香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 DEXIN CHINA HOLDINGS COMPANY LIMITED 德 信 中 國 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2019） 截至2023年6月30日止六個月 未經審核中期業績公告 2023年中期業績摘要： • 截至二零二三年六月三十日止六個月，本集團的總收入約為人民幣11,969.1 百萬元，同比增長約16.8%； • 截至二零二三年六月三十日止六個月，毛利約為人民幣1,515.9百萬元，同 比增長約19.1%； • 截至二零二三年六月三十日止六個月，淨虧損約為人民幣366.1百萬元； • 截至二零二三年六月三十日止六個月，合約負債（即預售樓款）約為人民幣 38,014.2百萬元； ...

Economic Performance - In 2022, China's GDP rose by 3% year-on-year, reflecting a stable economic performance despite global challenges[11]. - The real estate industry faced significant challenges in 2022, including a sales slump and increased competition, prompting the Group to prioritize quality and timely delivery[12]. - The real estate market is gradually showing signs of recovery due to supportive policies, and the Group aims to be well-positioned for future growth[27][29]. - The company anticipates a recovery in economic activities and market demand in 2023, driven by government policies aimed at stabilizing investment and promoting consumption[171]. - The real estate sector will continue to focus on "housing for living, not speculation" and "ensuring delivery," with the government implementing supportive policies to stimulate the market[173]. Land Acquisition and Development - The Group acquired 3 premium land parcels, adding approximately 287,000 sq.m. to its land reserve, totaling nearly 14.6 million sq.m. as of December 31, 2022[16]. - Approximately 80% of the Group's land reserves are located in first- and second-tier cities, with 20% in strong third-tier cities, focusing on high value-add locations[17]. - The Group's business expansion strategy is cautious, focusing on intensive cultivation of land resources with development potential[16]. - The Group's strategic focus remains on deep cultivation in key urban areas, including the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, while slowing down national expansion efforts[21][23]. - The company has significant land reserves, with a total gross floor area (GFA) of 9,765,821 sq.m., of which 67% is held for future development[178]. Financial Performance - As of December 31, 2022, the Group recorded total revenue of RMB 22,150 million, down by 4.2% year-on-year, and net profit attributable to shareholders amounted to approximately RMB 370 million, representing a decrease of approximately 60.3% compared to last year[21][23]. - The Group's contracted sales for the year ended December 31, 2022, amounted to approximately RMB 36.10 billion, a year-on-year decrease of approximately 51.2%, with a contracted sales area of approximately 1,973,000 sq.m., down by approximately 43.5%[21][23]. - For the year ended December 31, 2022, total revenue was approximately RMB 22,145.5 million, representing a year-on-year decrease of approximately 4.2%[86]. - Gross profit for the same period was approximately RMB 2,177.8 million, reflecting a year-on-year decrease of approximately 56.5%, with a gross profit margin of approximately 9.8%[86]. - The Group's profit and total comprehensive income decreased by approximately 93.2% to approximately RMB 161.5 million for the year ended December 31, 2022, down from RMB 2,376.7 million in 2021[118]. Operational Efficiency and Customer Satisfaction - The Group has delivered over 20,000 units in 31 batches by the end of 2022, achieving 100% on-time delivery, and has maintained a high customer satisfaction ratio in Zhejiang Province for five consecutive years[22][24]. - The Group emphasizes craftsmanship and quality in its brand positioning as "Your Life Companion," continuously improving its product line to meet diverse housing needs[22][24]. - The Group aims to improve the efficiency in the development and operation of its investment properties to ensure stable rental income growth[71]. - The completion of several projects in 2022 reflects the company's operational efficiency and ability to meet market needs[190]. Strategic Focus and Future Plans - The Group plans to maintain a cautious approach to market conditions while focusing on refined management and long-term product strategies to achieve balanced growth in scale, profit, and brand[27][28]. - Future plans include continued investment in property development projects and acquisition of suitable land parcels, funded by internal resources and external borrowings[157][160]. - The company plans to leverage its brand advantages in the Yangtze River Delta region, which accounts for approximately 25% of China's GDP, to capture growth opportunities[171]. - The company will continue to optimize its capital structure and improve financing costs while adhering to a prudent financing strategy[174]. - The company is committed to high-quality product development and continuous upgrades to enhance customer value[171]. Market Position and Recognition - The Group was ranked 45th in "China's Top 100 Real Estate Enterprises 2022" and has received multiple awards, highlighting its market position and recognition in the capital market[26][29]. - The Group's resilience was demonstrated by its commitment to product quality and operational fundamentals amid a volatile market environment[12]. - The Group's operational philosophy emphasizes that business operation is a marathon, focusing on sustainable and stable development amidst market fluctuations[31]. Employee and Operational Metrics - The total expenditure on employee salaries and welfare for the year ended December 31, 2022, was approximately RMB 713.2 million, compared to approximately RMB 860.6 million for the year ended December 31, 2021[162]. - The Group had a total of 1,561 employees as of December 31, 2022, a decrease from 2,476 employees as of December 31, 2021, with around 62% holding a bachelor's degree or above[162].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 DEXIN CHINA HOLDINGS COMPANY LIMITED 德 信 中 国 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2019） 截至2022年12月31日止年度業績公告之補充公告 茲提述德信中国控股有限公司（「本公司」）日期為2023年3月31日的公告，內容有 關本公司及其附屬公司（「本集團」）截至2022年12月31日止年度的綜合年度業績 （「該公告」）。除文義另有所指外，本公告所用詞彙與該公告所界定者具有相同涵 義。 董事會謹此提供下列有關該公告的補充資料。 核數師 本公司外部核數師開元信德會計師事務所有限公司（「開元信德」）已同意本公司公 佈有關本集團截至2022年12月31日止年度的綜合資產負債表、綜合全面收益表及 相關附註內的數字（金額載於本集團截至2022年12月31日止年度的經審核綜合財 務報表）。開元信德就此執行的工作不構成根據香港會計師公會頒 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 DEXIN CHINA HOLDINGS COMPANY LIMITED 德 信 中 國 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2019） 截至2022年12月31日止年度 年度業績公告 財務概要 ‧ 截至2022年12月31日止年度，物業預售賬款約為人民幣46,327百萬元，較 截至2021年12月31日止年度同比增長4%; ‧ 截至2022年12月31日止年度，總負債約為人民幣89,926百萬元，較截至 2021年12月31日止年度同比下降5%； ‧ 截至2022年12月31日止年度，有息負債約為人民幣21,191百萬元，較截至 2021年12月31日止年度同比下降30%； ‧ 截至2022年12月31日止年度，剔除預收賬款的資產負債率約為68%，持續 ...

Real Estate Market Overview - In the first half of 2022, the total sales of commercial housing in China amounted to RMB 6,607.2 billion, representing a year-on-year decrease of 28.9%[24]. - The overall economic situation in China is on a relatively stable track despite challenges posed by the pandemic resurgence in some regions[24]. - The real estate market is expected to improve gradually due to the introduction of supportive policies aimed at stabilizing the economy through the real estate sector[25]. - The real estate market is expected to stabilize and recover in the second half of 2022, with improved sales anticipated[150]. - The real estate market is anticipated to stabilize in the second half of 2022, with improved sales expected as economic conditions stabilize[152]. Government Policies and Support - The central and local governments have implemented various city-specific policies to stimulate the real estate market, including reducing down payment ratios and lowering housing loan interest rates[25]. - Financial services in the housing sector are being improved to support high-quality projects and alleviate liquidity risks for real estate enterprises[25]. - The overall economic stabilization effect through real estate is expected to become more prominent as policies take effect[25]. Company Performance and Financials - The Group's net profit for the first half of 2022 was approximately RMB903.8 million, with profit attributable to owners of the Company at approximately RMB740.5 million, representing a period-on-period decrease of 34.4% and an increase of 17.5%, respectively[28][29]. - The Group's total revenue for the first half of 2022 was approximately RMB10,246.5 million, reflecting a period-on-period decrease of approximately 21.6%[32][33]. - Contracted sales for the first half of 2022 amounted to approximately RMB19,380.0 million, a decrease of 55.0% year-on-year, with total contracted GFA sold of approximately 1,037,000 sq.m., down 49.2%[34][35]. - Revenue from property sales decreased by approximately 21.9% to approximately RMB9,903.7 million, accounting for about 96.7% of the total revenue[36][37]. - The Group's interest-bearing debts as of June 30, 2022, amounted to approximately RMB23,705.8 million, a decrease of 21.9% from December 31, 2021[28][29]. - The net gearing ratio among the "Three Red Lines" reduced to 57.1% from 60.5% at the end of 2021, with all "Three Red Lines" in green lights[28][29]. - The Group's gross profit for the six months ended June 30, 2022, was approximately RMB 1,272.4 million, a year-on-year decrease of about 55.4%, with a gross profit margin dropping from 21.8% to 12.4%[91]. - The Group's profit and total comprehensive income decreased by approximately 34.4% from RMB 1,378.4 million to RMB 903.8 million, while profit attributable to owners increased by 17.5% to RMB 740.5 million[109]. Operational Developments - The Group aims to improve operational efficiency of investment properties to ensure stable rental income growth and strengthen earnings sustainability[64]. - The Group's strategy includes the strategic selection and acquisition of land parcels in advantageous locations to further develop its business in targeted markets[67]. - The Group acquired 3 new land parcels with a total gross floor area (GFA) of approximately 286,000 sq.m. in the first half of 2022[28][29]. - The Group's total land reserves amounted to 10,462,862 sq.m. as of June 30, 2022, with 8,628,625 sq.m. under development[160]. - The Group has a total of 34 ongoing projects, showcasing its active engagement in the real estate market[177]. Project Development and Pipeline - The company has 5,205,329 sq.m. of projects under development, indicating a strong pipeline for future growth[165]. - The company is actively expanding its project pipeline, with several projects under development, indicating a robust growth strategy[174]. - The company is currently developing multiple residential and commercial projects across various cities, including Nanjing, Quzhou, and Xuzhou, with significant land parcels allocated for these developments[187]. - The company is focusing on expanding its residential portfolio, with numerous projects in various stages of development across key cities[176]. - The company aims to leverage its completed projects to drive future sales and revenue growth, positioning itself favorably in the real estate market[170]. Employee and Operational Costs - The Group's total expenditure on employee salaries and welfare for the six months ended June 30, 2022, was approximately RMB 356.7 million, up from RMB 302.7 million for the same period in 2021[150]. - The Group had a total of 1,931 employees as of June 30, 2022, a decrease from 2,476 employees as of December 31, 2021[150]. - Administrative expenses increased by approximately 17.6% from RMB 389.4 million to RMB 457.7 million, driven by higher staff costs and consulting fees[99]. Future Outlook - The company plans to continue investing in property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings[142]. - The company aims to enhance its market presence through the completion of high-quality residential and commercial properties[180]. - The ongoing projects are expected to contribute positively to the company's revenue in the upcoming quarters, aligning with its growth outlook[200].

Industry Challenges and Resilience - The real estate industry faced significant challenges in 2021, including tightened market regulations and a downturn, but the company achieved breakthroughs in operations, resources, quality, and organization [11]. - Despite the industry's downturn, the company demonstrated strong organizational resilience and managed to achieve growth [16]. - The company recognizes the transition from the era of land and leverage dividends to the era of management dividends, with future opportunities in brand dividends [15]. - The economic environment in 2021 was affected by the COVID-19 pandemic, but China managed to implement moderate policies to counteract economic pressures [14]. - The real estate market is experiencing a divergence among cities and intense competition, leading to a need for strategic adaptation [15]. - The company is committed to maintaining quality and controlling risks amid the industry's challenges [12]. - The company’s performance reflects its ability to navigate through a "cold winter" in the real estate sector [12]. - The company anticipates significant opportunities in the future despite the current market conditions [15]. Financial Performance - For the year ended December 31, 2021, the Group's total contracted sales amounted to approximately RMB 73.98 billion, representing a year-on-year increase of 16.45% [23]. - The recognized revenue for the Group was approximately RMB 23.1 billion, reflecting a 45.6% increase compared to 2020 [23]. - The Group's net profit was approximately RMB 2.38 billion, with a year-on-year increase of 5.1% [23]. - The annual cash collection rate exceeded 90%, enhancing the safety margin amid tightened bank credit conditions [23]. - The Group achieved total revenue of approximately RMB23,109.1 million, representing a year-on-year increase of 45.6% [41]. - The Group's gross profit for 2021 was RMB5,010.8 million, reflecting a period-on-period growth of 22.0% [41]. - Core profit for the year was RMB3,499.3 million, with a year-on-year growth of 16.1% [41]. - Contracted sales for 2021 amounted to approximately RMB73,980 million, a year-on-year increase of 16.4% [46]. - Revenue from property sales increased by approximately 43.5% year-on-year to approximately RMB22,269.3 million, accounting for approximately 96.4% of the total revenue of the Group [51]. Land Reserves and Acquisitions - As of December 31, 2021, the Group's land reserves included nearly 19.1 million sq.m., with about 73% located in first- and second-tier cities [23]. - In 2021, the Group entered three new cities, adding approximately 5.811 million sq.m. to its land reserves [19]. - The Group acquired 32 premium land parcels through various methods, including bidding and mergers, during the reporting period [19]. - The average land cost for new land reserves acquired was approximately RMB 5,550.9 per sq.m., with a total saleable GFA of approximately 5,810,625 sq.m. [85]. - The largest land reserve was in Hangzhou, accounting for 27.9% of the total land bank with 5,330,617 sq.m. [82]. - The total GFA of the Group's land reserves by geographical location includes significant holdings in the Yangtze River Delta and Pearl River Delta regions [80]. Revenue Streams - Revenue from property construction and project management services increased by approximately 1,086.2% year-on-year to approximately RMB437.7 million, accounting for approximately 1.9% of the total revenue of the Group [59]. - Revenue from management and consulting services increased by approximately 11.0% year-on-year to approximately RMB227.8 million, accounting for approximately 1.0% of the total revenue of the Group [63]. - Revenue from rental income increased by approximately 40.0% year-on-year to approximately RMB140.6 million, accounting for approximately 0.6% of the total revenue of the Group [63]. - Revenue from hotel operations increased by approximately 86.8% year-on-year to approximately RMB33.6 million, accounting for approximately 0.1% of the total revenue of the Group [63]. Employee and Operational Management - The Group's total employee count increased to approximately 2,476 as of December 31, 2021, up from 2,147 in the previous year, with around 60% holding a bachelor's degree or higher [176]. - Total expenditure on employee salaries and welfare for the year ended December 31, 2021, amounted to approximately RMB 860.6 million, compared to approximately RMB 636.2 million for the year ended December 31, 2020, reflecting a year-over-year increase of about 35.3% [178]. - The Group's employee training initiatives included 228 in-class trainings or professional lectures, benefiting approximately 2,476 employees by enhancing their expertise in the real estate industry [178]. Strategic Focus and Future Plans - The Group aims to maintain a focus on cash flow safety and profit while adhering to a strategic layout rooted in Zhejiang and expanding to key hub cities in China [27]. - The Group is focused on expanding its presence in key hub cities across China, particularly in the Yangtze River Delta region [51]. - The Group plans to continue investing in property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings, with no other material investment plans disclosed as of the report date [172]. - The Group's operational philosophy is described as marathon-style management, aiming for quality growth amidst changing market conditions [182]. - The Group emphasizes a quality management concept centered on customer needs and aims to create value for customers while adhering to a steady development strategy [184]. Financial Health and Risk Management - The Group's net gearing ratio was approximately 60.5% as of December 31, 2021, a decrease of 14.5 percentage points from approximately 75.0% as of December 31, 2020 [139]. - The Group's current ratio slightly decreased from approximately 1.38 times as of December 31, 2020 to approximately 1.31 times as of December 31, 2021 [139]. - The Group's credit ratings from Standard & Poor's, Moody's, and Lianhe Ratings Global were "B" (Negative outlook), "B2" (Stable outlook), and "BB-" (Stable outlook) respectively [133]. - The Group plans to monitor exchange rate risks regularly and will make foreign exchange hedging arrangements when necessary [142]. Recognition and Rankings - The Group has been recognized as one of "China's Top 10 Real Estate Companies in Annual Financial Performance 2021" and "China's Top 10 Listed Real Estate Enterprises in Solvency 2021" [95]. - The Group ranked 55th in "China's Top 100 Real Estate Enterprises" for 2021, marking its ninth consecutive year in this ranking [95].

Financial Performance - In the first half of 2021, the total revenue reached RMB13,071.0 million, with a gross profit of RMB2,850.1 million, indicating significant growth compared to the previous period[14]. - For the six months ended June 30, 2021, the Group recorded a core profit of RMB 2,084.0 million, representing a period-on-period growth of 15.0%[16]. - Total revenue for the same period was approximately RMB 13,071.0 million, reflecting a period-on-period increase of approximately 68.5%[18]. - Net profit increased by 2.6% period-on-period to approximately RMB 1,378.4 million[66]. - Profit attributable to owners of the Company decreased by approximately 10.0% to approximately RMB 630.2 million[66]. - The cost of sales for the Group was approximately RMB 10,220.9 million, representing a period-on-period increase of approximately 79.7%[72]. - The overall gross profit margin decreased from approximately 26.7% for the six months ended June 30, 2020, to 21.8% for the six months ended June 30, 2021, a decrease of approximately 4.9 percentage points[78]. - Other income for the six months ended June 30, 2021, was approximately RMB 54.6 million, down from approximately RMB 63.9 million for the same period in 2020[79]. Sales and Revenue Growth - Contracted sales reached approximately RMB 43,030.0 million, marking a period-on-period increase of 67.4%, with a total contracted GFA sold of approximately 2,041,000 sq.m., an increase of 68.0%[20]. - Revenue from property sales was approximately RMB 12,673.9 million, a period-on-period increase of approximately 67.1%, accounting for approximately 97.0% of total revenue[67]. - Revenue from property construction and project management services surged by approximately 1,293.7% to RMB 165.8 million, accounting for 1.3% of total revenue[32]. - Rental income rose by approximately 44.8% to RMB 72.3 million, contributing 0.6% to total revenue[32]. Land Acquisition and Development - The Group acquired 27 land parcels in the first half of 2021, increasing total GFA by approximately 4.93 million sq.m., with 75% located in first- and second-tier cities[16]. - The Group acquired 27 parcels of land during the six months ended June 30, 2021, providing a total saleable GFA of 4,927,371 sq.m. at an average land cost of approximately RMB 5,498.1 per sq.m.[57][58]. - As of June 30, 2021, the total land reserves amounted to 10,870,646 sq.m., with 8,108,575 sq.m. under development[156]. - The total land reserves held by the company reached 19,926,629 sq.m.[161]. Operational Efficiency and Management - The company has focused on optimizing and diversifying its business development strategy, enhancing corporate strength and profitability[14]. - The Group aims to improve operational efficiency of investment properties to ensure stable rental income growth and strengthen earnings sustainability[49]. - The financial management system for the real estate industry has been made more prudent, promoting better allocation of financial resources[14]. - The Group actively manages its liquidity position with sufficient standby banking facilities to cope with daily operations and future capital demands[101]. Market Conditions and Government Policies - The GDP in China increased by 18.3% in Q1 2021 and 7.9% in Q2 2021, reflecting a strong economic rebound post-pandemic[14]. - The central government emphasized policies to stabilize land prices, housing prices, and market expectations, aiming for a sustainable real estate market[14]. - The real estate industry remains stable overall, influenced by government policies and robust demand[14]. - The real estate policies will maintain a framework of "housing for living, not speculation," promoting healthy market development in the second half of 2021[152]. Employee and Operational Growth - The total expenditure on employee salaries and welfare for the six months ended June 30, 2021, was approximately RMB 302.7 million, compared to RMB 186.2 million for the same period in 2020, reflecting a year-on-year increase of approximately 62.5%[142]. - The Group had a total of 2,199 employees as of June 30, 2021, up from 2,147 employees as of December 31, 2020[142]. Future Outlook and Strategic Focus - The Group aims to achieve quality growth while controlling financial and liquidity risks, adhering to a long-term operational philosophy[149]. - Future investments will focus on property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings[139]. - The Group plans to expand into other core and potential cities in China while maintaining high-quality construction operations[150]. - The company is exploring strategic acquisitions to bolster its market position and enhance its project offerings[169].

Market Performance - The real estate market in China showed strong resilience in 2020, with stable increases in selling prices and sales amounts, indicating recovery from the pandemic's impact [15]. - The central government's real estate controls included the "Three Red Lines" policy, which tightened regulatory controls on real estate financing [15]. - The real estate sector was reaffirmed as a cornerstone of economic development, demonstrating its stabilizing role [15]. Group Performance - During the reporting period, the Group achieved significant growth in operating performance, reflecting a robust business expansion strategy [16]. - The Group's performance in 2020 exceeded expectations despite the challenges posed by the COVID-19 pandemic [15]. - The Group received widespread recognition from the capital market, clients, and partners during the reporting period [16]. - The Group has been recognized as one of "China's Top 100 Real Estate Enterprises" for eight consecutive years, ranking 55th in 2020 [32]. Financial Highlights - As of December 31, 2020, the Group's total revenue reached RMB 15.7 billion, a year-on-year increase of 64.7%, and gross profit was RMB 3.9 billion, up 27.6% year-on-year [26]. - The Group's contracted sales amounted to RMB 63.53 billion, representing a significant year-on-year increase of 40.9%, with a total contracted sales area of approximately 3.114 million square meters, up 26.5% year-on-year [26]. - The Group's core profit was RMB 2,809.3 million, reflecting a year-on-year increase of 7.0% [26]. - The average selling price of commercial housing increased by 5.9% year-on-year to approximately RMB 9,860 per sq.m. [50]. - The total floor area of commercial housing sold increased by 2.6% year-on-year to 1,760.86 million sq.m. [50]. Land Acquisition and Reserves - Approximately 73.4% of the Group's land reserves are located in first- and second-tier cities, while about 24.8% are in strong third-tier cities, indicating an improvement in the proportion of land reserves in high value-add cities [22]. - The Group acquired 40 parcels of land in 2020 through various methods, adding approximately 5,395,033 square meters to its land reserve [23]. - As of December 31, 2020, the Group operated 166 projects in 26 core cities, with land reserves totaling approximately 16,256,313 sq.m. [61]. Financing and Investment - The Group obtained financing facilities of approximately RMB 13.71 billion from various domestic and overseas banking institutions in 2020, including the first batch of supply chain financing in China [28]. - The Group's financing capability has improved notably, as evidenced by the successful issuance of USD notes in the overseas market with a falling coupon rate to single digits [28]. - The Group's total borrowings from banks and other financial institutions increased by approximately 73.0% from approximately RMB 14,848.1 million as of December 31, 2019, to approximately RMB 25,688.1 million as of December 31, 2020 [159]. Operational Efficiency and Strategy - The Group focused on optimizing business strategies and enhancing fundamental management to reduce costs and improve efficiency [16]. - The Group's strategies included a balanced development approach amid changing market environments and intensifying competition [16]. - The Group aims to enhance operational efficiency by connecting its operating and financial management systems and adopting a moderate financial control policy to optimize capital and debt structure [39]. Employee Development - The total expenditure on employee salaries and welfare for the year ended December 31, 2020, was approximately RMB 636.2 million, an increase of 21.9% from RMB 521.7 million in 2019 [193]. - The Group's workforce increased to 2,147 employees as of December 31, 2020, up from 1,617 employees in the previous year, indicating a growth of 32.8% [193]. - The Group provided approximately 204 training sessions and a total of around 1,956 training participations for employees to enhance their professional knowledge in the real estate industry as of December 31, 2020 [199].

Economic Overview - In the first half of 2020, China's GDP fell by 6.8% year-on-year in Q1, but rebounded with a growth of 3.2% in Q2[13]. - The real estate market experienced a downturn from January to March 2020, followed by a recovery from April to June 2020[15]. - The proactive fiscal policy and relatively loose monetary policy are expected to continue in the second half of 2020[14]. - Looking ahead to the second half of 2020, China's economic fundamentals are expected to improve, with industrial production and fixed asset investment recovering across the board[112]. Real Estate Market Trends - The central government's real estate work forum emphasized that the pandemic has not changed the regulatory stance of "housing is for living, not speculation"[14]. - The real estate industry remains a crucial cornerstone of domestic economic growth, with stable overall industry volume anticipated[14]. - Urbanization and talent attraction policies in various cities indicate significant potential for housing demand due to population migration[14]. - The land market supply and demand are both booming, maintaining a healthy long-term development trend for the industry[13]. - The market is showing structural opportunities under the regulation policies of "taking measures in response to local conditions"[14]. - Financial supervision is trending towards tightening, despite the ongoing supportive fiscal and monetary policies[14]. - The overall sales volume of the PRC real estate market is expected to stabilize in the medium to long term[14]. Company Financial Performance - For the first half of 2020, the Group achieved total revenue of approximately RMB7.649 billion, representing a year-on-year growth of 117%[18]. - Gross profit for the same period was approximately RMB1.962 billion, with a year-on-year increase of 61%[18]. - Core profit reached RMB1.302 billion, reflecting a year-on-year growth of 11%[18]. - Contracted sales amounted to approximately RMB25.710 billion, marking a year-on-year increase of 17.8%[23]. - The average selling price (ASP) of contracted sales was approximately RMB21,160.5 per sq.m., representing a period-on-period increase of approximately 21.2%[23]. - Total revenue for the six months ended June 30, 2020, was approximately RMB7,649.4 million, representing a period-on-period increase of approximately 117.5%[62]. - Gross profit for the same period was approximately RMB1,962.1 million, with a gross profit margin of approximately 25.7%, a decrease of approximately 8.9 percentage points compared to the previous year[62]. - Revenue from property sales was approximately RMB7,582.7 million, accounting for approximately 99.1% of total revenue, with a period-on-period increase of approximately 118.3%[62]. - The Group's net profit increased by 4.6% period-on-period to approximately RMB1,342.9 million for the six months ended June 30, 2020[62]. - Profit attributable to owners of the Company decreased by approximately 29.7% period-on-period to approximately RMB700.0 million for the six months ended June 30, 2020[62]. Land Acquisition and Development - The Group acquired 20 land parcels, increasing total GFA by approximately 2.86 million sq.m., with 94% located in first- and second-tier cities[18]. - As of June 30, 2020, the total land reserve was approximately 15.71 million sq.m., consolidating strategic layouts in four core metropolitan areas[18]. - The Group's strategic land acquisitions are focused on cities such as Hangzhou, Wenzhou, Huzhou, and Ningbo, enhancing its market presence in these regions[47][54]. - Total land reserves amount to 15,705,245 sq.m., with 1,176,330 sq.m. unsold saleable GFA[127]. - Under development GFA totals 11,584,036 sq.m., indicating significant ongoing projects[127]. - The company holds 2,561,435 sq.m. of planned GFA for future development, showcasing growth potential[127]. Revenue Sources - Revenue from property construction and project management services decreased by approximately 9.2% to RMB11.9 million, accounting for 0.2% of total revenue[34]. - Revenue from rental income increased by approximately 87.7% to RMB49.9 million, accounting for 0.7% of total revenue[34]. - Revenue from hotel operations slightly decreased by approximately 1.9% to RMB4.9 million, accounting for 0.1% of total revenue[38]. - The Group's rental income from commercial properties was approximately RMB49.9 million, representing a period-on-period increase of approximately 87.7%[62]. Financial Position and Ratios - As of June 30, 2020, the Group had a total cash and bank balances of approximately RMB13,294.0 million, compared to approximately RMB9,570.1 million as of December 31, 2019[81]. - The Group's total borrowings from bank and other financial institutions amounted to approximately RMB18,726.6 million, representing an increase of approximately 26.1% compared to approximately RMB14,848.1 million as of December 31, 2019[81]. - The Group's net gearing ratio was 76.3% as of June 30, 2020, an increase of 7.6 percentage points compared to 68.7% as of December 31, 2019[84]. - The Group's current ratio improved from approximately 1.29 times as of December 31, 2019, to approximately 1.34 times as of June 30, 2020[84]. Employee and Operational Insights - For the six months ended 30 June 2020, the Group's employee salary and welfare expenditure amounted to approximately RMB186.2 million, an increase of 40.7% compared to RMB132.3 million for the same period in 2019[110]. - As of 30 June 2020, the Group had a total of 1,811 employees, up from 1,617 employees as of 31 December 2019, reflecting a growth of 11.9%[110]. Strategic Focus and Future Outlook - The Group plans to continue investing in property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings[106]. - The Group emphasizes a quality management concept centered on customer needs and aims to create value for customers while adhering to a steady development strategy[115]. - The development of COVID-19 remains a significant risk factor, and the Group will continue to monitor its impact on financial performance[116]. - The Group's strategy includes optimizing capital structure and expanding diversified financing channels to achieve balanced growth in scale, profit, and brand[115]. Project Development and Locations - The company is actively expanding its commercial projects, with the Park (Phase II) and other commercial initiatives in Hangzhou under development[138]. - The company is focusing on residential and commercial mixed-use developments, as seen in projects like Haipai Mansion Phase I and II in Wenzhou[140]. - The company is strategically holding several land parcels for future development, indicating a long-term growth strategy in key urban areas[138]. - The company has multiple projects under development across various cities, including Nanjing, Suzhou, and Wuhan, focusing on residential and commercial uses[162].

Land Acquisition and Development - In 2019, the company entered 5 new cities and added approximately 4.74 million square meters of land reserves, acquiring 38 new land parcels through various means[8]. - As of December 31, 2019, the company's operational network covered 23 cities with 133 projects, including 118 actively managed projects and nearly 13.42 million square meters of quality land reserves[8]. - The company maintained a strong presence in the Yangtze River Delta while successfully entering the Guangdong-Hong Kong-Macao Greater Bay Area, acquiring quality projects in Guangzhou and Foshan[8]. - Approximately 65% of the company's land reserves are located in first and second-tier cities, with about 30% in strong third-tier cities, forming a strategic layout across key economic regions[8]. - The average land cost for acquiring quality land parcels was approximately RMB 6,220.2 per square meter, adding a total of 4,744,618 square meters of saleable land reserve[39]. - The land reserve in Hangzhou accounted for 30.0% of the total land reserve, with a total area of 4,030,940 square meters[39]. - The company is focused on market expansion and enhancing its land bank in economically strategic areas[38]. - The company is strategically positioned in key urban areas, which may enhance its competitive advantage in the real estate market[121]. - The company is involved in various land acquisitions, indicating a strategic approach to growth and market expansion[136][156]. Financial Performance - The group's contracted sales amount (including joint ventures and associates) for the year ended December 31, 2019, was approximately RMB 45.08 billion, an increase of about 13.8% compared to 2018[24]. - The total revenue for the group for the year ended December 31, 2019, was approximately RMB 9.51 billion, reflecting a growth of approximately 15.8% year-on-year[23]. - The net profit attributable to the company's shareholders for the year ended December 31, 2019, was approximately RMB 1.56 billion, representing a year-on-year increase of about 7.1%[23]. - The average selling price of contracted sales was approximately RMB 18,308.5 per square meter, an increase of about 8.2% year-on-year[24]. - The group confirmed property sales revenue of approximately RMB 9.43 billion, a year-on-year increase of about 16.0%, accounting for approximately 99.2% of total revenue[26]. - The average selling price of confirmed properties was approximately RMB 13,328 per square meter, a decrease of about 18.4% year-on-year[26]. - Gross profit for the year was approximately RMB 3,059.3 million, with a gross margin of approximately 32.2%, down from about 38.0% in the previous year[49][53]. - The group's sales cost for the year was approximately RMB 6,453.7 million, reflecting a year-on-year increase of approximately 26.8%[52]. - Other income recorded was approximately RMB 81.6 million, up from RMB 37.3 million in the previous year, primarily from management and consulting services[54]. - The total profit and comprehensive income increased by approximately 22.6% from RMB 1,841.0 million for the year ended December 31, 2018, to RMB 2,256.6 million for the year ended December 31, 2019[64]. Operational Strategy - The group plans to focus on core business and enhance operational efficiency while pursuing a strategy of "deepening the Yangtze River Delta and expanding into national central cities" in 2020[16]. - The group aims to optimize its capital structure through diversified financing channels and maintain prudent financial control policies[16]. - The company plans to enhance the operational efficiency of investment properties to ensure stable growth in rental income and strengthen profitability sustainability[36]. - The company is committed to a strategy of deepening its presence in the Yangtze River Delta and expanding into major cities nationwide[98]. - The company plans to enhance its management precision and internal capabilities to ensure the successful implementation of its development strategy in 2020[100]. - The company is committed to sustainable development practices in its new projects, which may appeal to environmentally conscious consumers[200]. Awards and Recognition - In 2019, the company received several awards, including "Top Ten Winners in China's Real Estate Industry" and ranked 60th among "China's Top 100 Real Estate Companies," reflecting its market recognition[11]. - The group was included in the MSCI China Small Cap Index in May 2019, enhancing its visibility among institutional investors[14]. - The company was included in the Hang Seng Composite Index and the Shenzhen-Hong Kong Stock Connect mechanism, enhancing liquidity and valuation levels[97]. - The group received several awards in 2019, including recognition as one of the "Top 10 Winners in China's Real Estate Industry" and "Top 100 Real Estate Companies in China" for seven consecutive years[47]. Employee and Talent Management - As of December 31, 2019, the group had 1,617 employees, with total employee compensation expenses of approximately RMB 521.7 million, an increase of 47.5% from RMB 352.9 million in 2018[95]. - The company emphasized talent acquisition and organizational optimization, establishing a management team focused on collaboration and shared success[12]. Investment and Financing - The group completed its initial public offering on February 26, 2019, which strengthened its capital base for future development[13]. - The group issued USD 300 million of senior notes in 2019, with a fixed annual interest rate of 12.875%[69]. - The total investment in property development activities increased significantly to RMB 10,690.5 million as of December 31, 2019, from RMB 5,664.5 million as of December 31, 2018[78]. - The total borrowings from banks and other financial institutions increased by approximately 51.8% to RMB 14,848.1 million as of December 31, 2019, compared to RMB 9,778.6 million as of December 31, 2018[67]. - The net debt-to-equity ratio increased to 68.7% as of December 31, 2019, from 67.6% as of December 31, 2018, primarily due to increased land reserves[72]. - The group provided guarantees for mortgage financing to several buyers, totaling approximately RMB 12,603.1 million as of December 31, 2019, compared to RMB 9,830.3 million in 2018, reflecting a 28.5% increase[81]. Project Development and Pipeline - The company has a total of 7,067,319 square meters of land reserves, with 5,086,349 square meters currently under construction[101]. - The company has ongoing projects in various cities, including 1,521,032 square meters in Hangzhou and 806,177 square meters in Wenzhou[101]. - The company has a diverse project pipeline, with a mix of residential and commercial properties across various cities, indicating a strategic approach to market expansion[124]. - The company is actively developing several projects in Wenzhou, with notable ongoing projects like Ideal City and Feili Bay, which are expected to enhance its market presence[121]. - The company is focusing on mixed-use developments, with a significant portion of projects designated for commercial and residential purposes[138][139]. - The company has several completed projects, which may contribute to revenue generation in the upcoming quarters[170][173].