In the first half of 2020, Aoyuan actively exploited its mergers and acquisitions advantages, acquired 29.99% of Jinghan's shares, further expanded land resources, and deepened regional cultivation. According to the company's value distribution, Aoyuan's South China region accounts for 38% of value reserves, which will be the main region supporting the company's sales growth. In addition, the company has extremely large urban renewal projects in the Guangdong-Hong Kong-Macao Greater Bay Area, with a value of over 600 billion yuan. In the future, as the company expands its layout in the field of urban renewal, it is expected that urban renewal projects will double compared to the present, providing great potential for the company's scale growth. 1. Operating income reached a record high. The guaranteed performance of East China and South China regions continued to improve. In 2019, Aoyuan achieved operating income of 28.24 billion yuan, an increase of 19.3% over the previous year; net profit of 2.42 billion yuan was realized, an increase of 6.3% over the previous year. According to the company's sales distribution, sales in Guangdong and Jiangsu were 10.42 billion yuan and 6.91 billion yuan respectively. Overall, East China and South China are still regions where the company's sales amount is relatively high. At the same time, these two regions have excellent housing market performance and sufficient population demand, which can guarantee the company's continued growth in sales scale in the future and drive up revenue. 2. Actively utilize the advantages of mergers and acquisitions. The total value of goods exceeded trillion yuan. In the first half of 2020, Aoyuan added 6.95 million square meters of land reserves and an additional saleable value of 83.2 billion yuan. The company's cumulative land reserves have reached 48.74 million square meters, with a total value of 501.5 billion yuan. If urban renewal projects are included, the company's total value will reach 116.2 billion yuan. In addition to continuing to pay attention to the bidding market, Aoyuan continues to make full use of the advantages of traditional mergers and acquisitions to acquire land, actively seek out mergers and acquisitions opportunities, and accelerate land transformation for urban renewal projects and expand cooperative development channels. 3. Pay attention to internal repayment and external fund-raising. The debt ratio was far lower than EH50. As of the end of the first half of the year, the company had capital reserves of 69.44 billion yuan, and the cash repayment rate reached 90%. Precisely because of the importance attached to monetary capital, the company's net debt ratio remained low at 79.8%, far below the average net debt ratio of EH50 housing enterprises. In terms of financing, the company actively uses both domestic and overseas markets. Furthermore, the company has a high credit rating in the capital market. Both S&P and Moody's gave a “positive” rating outlook, and Joint Credit gave it an “AAA” rating.