Mid-2021 business continuity is in line with promises. As promised by management in March this year, the company's total revenue for the first half of 2021 reached RMB 12 billion. The gross profit department clearly reversed, from 23% in the first half of 2020 to 20.1% in the first half of 2021, which was also in line with management and market expectations. Core shareholders' net profit for the first half of 2021 was RMB 739 million, corresponding to the net profit margin of core shareholders of 6.2% and the interim dividend of 5.3 Hong Kong cents per share. Corresponding to a deep interest ratio of 35%, this ratio will be maintained over the next few years.

Strict audit procedures enhanced credibility, and Feng Zhou unexpectedly re-listed the accounting items for the first half of 2020 to correct previous mistakes 1) the three joint venture companies were sold as subsidiaries in the first half of 2020 (revised classification in the 2020 full-year results), and 2) 11 projects were recognized as revenue when delivery standards were not fully met. According to management, A Zhou has established a more effective work system with auditor Ernst & Young, including increasing the frequency of in-depth meetings with Anshui and involving the Anshui Shenzhen team in field follow-up.

Financial security is a priority. Due to prudent land acquisition and active debt repayment, Huai further improved its balance sheet situation in mid-2021. After rapid expansion in the past, Weizhou will prioritize quality growth under financial security in the next few years. Upgrading the rating to “collection”... We believe that Yuzhou's solid property delivery will give investors more confidence in its steady recovery. The company's revenue target of RMB 27 billion for 2021 is moving forward steadily. Based on the low value, we raised the “collection” of investment rating coins. The new target price was HK$2.10, corresponding to 4,6 credit's core market business rate in 2021 and 0.5 times the net market ratio in 2021