Core ideas:

With the gradual deepening of the regulation and control of the industry, the living space of small and medium-sized housing enterprises is becoming smaller and smaller. in our view, small and medium-sized housing enterprises should first ensure adequate funds, stick to their own layout of the city, expand the advantages of deep ploughing, and then cultivate the external layout of the city. maybe we can get better development. In the first half of 2021, Dafa Real Estate insisted on "1x".

Strategic layout, deep ploughing director triangle and Chengdu-Chongqing urban agglomeration of dividends began to release, high-quality layout back-nurtured sales performance, making the company's performance ushered in substantial growth.

First, the sales volume has increased by 130% over the same period last year, and exceeding the performance target is expected in the first half of 2021. With the deepening of the company's strategic layout, the layout dividends of the Yangtze River Delta and Chengdu and Chongqing begin to be released, and the high-quality layout feeds the sales performance. as a result, the company's performance has ushered in substantial growth. From January to June 2021, Dafa Real Estate achieved sales of 25.81 billion yuan, an increase of 130.3% over the same period last year, and 71.7% of the sales target of 36 billion yuan, mainly driven by cities in the Yangtze River Delta and Chengdu-Chongqing metropolis. Second, adhere to the "1x" strategic layout and increase market share in the first half of 2021. Dafa Real Estate adheres to the strategic layout of "1x", and seven new projects are located in the Yangtze River Delta and Chengdu-Chongqing metropolis. With a new construction area of 114.0 million square meters, we believe that with the narrowing of real estate regulation and the high pressure of financing, small and medium-sized enterprises should invest prudently in the context of ensuring the safety of their own capital flows, and give priority to ploughing cities that have already been laid out. increasing market share may be more conducive to enterprise development than impulsive expansion.

Third, the three red lines remain green, and the cost of financing decreases gradually.

Dafa Real Estate insists on a sound cash flow and maintains a green level in 2021. By the end of June 2021, the net debt ratio was 56.4%, the asset-liability ratio excluding prepayment was 69.0%, the cash-to-short-debt ratio was 1.4 times, and the short-term debt repayment ability was strong. Long-term debt repayment pressure is less. In addition, Dafa Real Estate is actively building diversified financing channels at home and abroad, and because of its good financial situation and rapid performance expansion, it provides bargaining chips for corporate financing. the average financing cost in the first half of 2021 fell 0.8 percentage points to 8.7% compared with the end of 2020.