Core ideas:

I. contract sales should be strong and tenacious, and adhere to accurate investment orientation.

In terms of sales-oriented business, Dayue City realized contract sales of 28.5 billion yuan, down 21% from the same period last year, which was significantly less than the industry level. In terms of holding business, Dayue City maintains the pace of expansion and opening, and maintains a good level of operation in shopping malls and office buildings. In terms of investment, in the first half of 2022, Dayue City won a total of seven projects in Beijing, Hangzhou, Suzhou, Wuhan, Chengdu and other core cities.

Second, profitability remained stable. Gross profit margin increased by 2.7% to achieve operating income of 15 billion yuan, an increase of 5.3% over the same period in 2021. Gross profit margin and net profit margin were 33.9% and 7.1% respectively, up 2.7% and 1.1% respectively compared with the same period in 2021.

Third, the level of debt is in a reasonable range, and financing costs have dropped further. As of the first half of 2022, the net debt ratio and cash-to-short debt ratio of enterprises have reached the target, which is 93.3% and 1.4 times respectively (without deducting restricted funds). The asset-liability ratio excluding advance payments is 71.1%, slightly exceeding the regulatory requirements.

In terms of financing capacity, the financing channels of Dayue City are basically unobstructed, while financing costs are further reduced.