Core ideas:

In the first half of 2022, Guangming Real Estate actively fulfilled its social responsibility, cooperating with the government and Bright Food Group to participate in anti-epidemic, supply, support and other work during the period of closure and control in Shanghai. at the same time, the net profit and net profit margin of real estate carry-over projects increased under the circumstances of higher gross profit margin, higher investment income and lower taxes and fees. In the second half of the year, the group will focus on stock elimination, capital balance, management and control efficiency and other aspects. Especially in the development of the port area, we will promote the commercial project of the Lingang Guangming Center with a high standard, and speed up the operation and promotion of the muddy city project in the Lingang new area of the Shanghai Free Trade Zone.

First, the sales amount is 5.18 billion yuan and actively fulfill the social responsibility.

In the first half of the year, the sales volume of Guangming Real Estate was 5.18 billion yuan, down 73.2% from the same period last year, and the sales area was 472,000 square meters, down 62.5% from the same period last year. There are two main reasons: first, Shanghai, as the stronghold of the group, was seriously affected by the epidemic in the first half of the year, and the sales office stalled for two months. Second, Guangming Real Estate only promoted the Guangming City project in Nanning, and the scale of the push declined in the first half of the year, affecting the group's sales performance.

Second, operating income 7.34 billion yuan, real estate business gross profit margin 14.9% in the first half of the year, Guangming Real Estate realized operating income of 7.34 billion yuan, gross profit margin of 13.9%, net profit margin of 1.6%, of which real estate development and supporting business achieved operating income of 6.61 billion yuan, down 19.3% from the same period last year. Gross profit margin was 14.9%, an increase of 4.3% over the same period in 2021 However, the overall net profit margin of the group is at a low level in the industry, and we still need to pay close attention to cost and expense control in order to achieve a real rebound in profitability.

Third, remove inventory, reduce leverage, withhold the pre-asset-liability ratio of 78.2%. By the end of June, the net debt ratio of Bright Real Estate was 186.1%, excluding accounts received in advance, the capital-to-debt ratio was 78.2%, and the cash-to-debt ratio was 1.4 times. The pressure of leverage reduction is greater, but Guangming Real Estate relies on Bright Food and Shanghai state-owned assets, and the financing channels are relatively secure. as of the end of June, the average financing cost of the group was 4.7%. It is 21 basis points lower than at the end of 2021.