Core ideas:

As a Zhejiang housing enterprise, Dexin's sales share is mainly concentrated in Zhejiang, with Wenzhou alone accounting for 40.3% of its settlement income in the first half of the year. According to the distribution of land reserves, Dexin's land reserves in Hangzhou and Wenzhou reached 50.7%, so these cities will still contribute to the company's future sales growth. As the company increases its layout in the Yangtze River Delta region, it is expected to be the pillar of the company's performance growth.

First, Zhejiang contributed to sales growth, Wenzhou revenue accounted for 40.3% of the first half of 2020, the company achieved sales amount of 25.71 billion yuan, sales area of 121.5 million square meters, the average sales price rose to 21160.5 yuan / square meter.

With the rapid growth of sales, the carry-over income of the company has also increased at a high speed.

In the first half of the year, Dexin realized operating income of 7.65 billion yuan, an increase of 117.5% over the same period last year, and core profit of 1.3 billion yuan, an increase of 11% over the same period last year. Among them, property sales are the main source of the company's income growth, accounting for 99.1%, with an operating income of 7.58 billion yuan, an increase of 118.3% over the same period last year.

Second, increase the intensity of investment, focusing on the triangle of directors.

In the first half of the year, the company continued to obtain 20 cases of land on the basis of deep ploughing in Zhejiang and even the Yangtze River Delta, with a new land reserve of 286.3 million square meters, with a total investment of 21.48 billion yuan and an average land cost of 7502.3 yuan per square meter. According to the investment-sales ratio (the amount of investment in the current year / the amount of sales in the year), it reached 0.8 in the first half of 2020, which is higher than that in previous years. The total land reserve has increased to 1570.5 million square meters, with a survival ratio of 6.5 years, which is sufficient for the company's long-term development.

Third, the net debt ratio has increased slightly, but the short-term solvency has been further strengthened. with increased investment, the company's net debt ratio has risen by 7.6 percentage points from 68.7% in the same period in 2019 to 76.3%, maintaining a relatively stable level. In terms of short-term debt repayment, the company's cash-to-short-debt ratio has increased to 2.2 times, and the short-term debt repayment ability is strong. In addition, the company has a credit line of 17.04 billion yuan in the bank, but still has 2.07 billion yuan unspent. Generally speaking, with the increase of investment in 2020, the company still maintains a relatively strong solvency, low debt risk, and abundant bank credit to help the company to continue to increase investment.