First, the sales of self-investment contracts increased significantly, and the intensity of investment remained high in the first half of 2021. Greentown China realized contract sales of 171.7 billion yuan, an increase of 88.3 percent over the same period last year, of which 136.9 billion yuan was sold by self-investment contracts, a sharp increase of 107.1 percent. Sales in first-and second-tier cities and the Yangtze River Delta account for 79% and 62% respectively, while Hangzhou City accounts for 17%.

In terms of investment, Greentown China maintains a high intensity, and the region still focuses on the Yangtze River Delta. In the first half of the year, Greentown China's investment-to-sales ratio was 0.8, and the value of new goods reached 214 billion yuan, of which the Yangtze River Delta accounted for 50%, Hangzhou and Ningbo accounted for 12% and 13%.

Second, the gross profit margin of property sales has declined, and the level of cost control rose in the first half of 2021. The gross profit margin and net profit margin were 22.0% and 10.8% respectively, down 3.9 percentage points and 2.3 percentage points compared with the same period in 2020.

The decline in gross profit margin is mainly due to the impact of the price limit policy, the brand premium is not fully reflected. The rate of three expenses decreased by 6.6 percentage points, reflecting an increase in the level of cost control.

Third, the "three red lines" are still yellow, and the financing cost is further reduced to 4.6% of the net debt ratio, the asset-liability ratio excluding advance collection, and the cash-to-short-debt ratio are 75.2%, 73.5% and 1.6 times, respectively. The short-term debt ratio was further optimized to 23.5 per cent, while financing costs continued to fall to 4.6 per cent, reflecting the full recognition of it by the capital markets.