In the first half of 2020, Dafa Real Estate continued to maintain sustainable growth and performed well in contract sales, land storage, capital, financial structure and other dimensions, showing a good momentum of speed-up and efficiency-increasing.
First, speed up efficiency and high-quality growth, contract sales increased by 58% year-on-year in the first half of 2020, Dafa real estate contract sales of 11.208 billion yuan, an increase of 58%; contract sales area of about 801000 square meters, an increase of 36% over the same period last year; the average contract sales price was 13996 yuan per square meter, up 16% from the same period last year. At the same time, the total assets of Dafa Real Estate are about 33.567 billion yuan, up 21% from the same period last year; the total equity is about 7.215 billion yuan, up 28% from the same period last year; the total cash held is about 5.793 billion yuan, up 23% from the same period last year; and the operating income in the first half of the year is about 3.472 billion yuan. 2020 interim dividend of 0.034 yuan per share, continuing to cash in shareholders' returns.
Second, deep ploughing grows into three corners, and the total land storage value is about 91 billion yuan.
Dafa Real Estate ploughs deeply and grows the triangle under the strategic guidance of "1x 5X", and lays out the national golden urban agglomeration. As of June 30, 2020, Dafa Real Estate has operated 82 projects in the Yangtze River Delta and the country's five major golden urban agglomerations. During the reporting period, Dafa Real Estate added 16 pieces of land, an additional land reserve of 1.86 million square meters, and a new land storage value of 26.8 billion yuan. The total land storage construction area is 6.5 million square meters, the total soil storage value is 91 billion yuan, and the total soil storage value accounts for 84% in the Yangtze River Delta region. From the perspective of urban energy level distribution, the total soil storage value accounts for about 80% of the total land storage value in high-quality first-and second-tier cities.
III. Financial stability, abundant funds, and continued improvement in credit indicators
Dafa Real Estate holds a total cash of 5.793 billion yuan, an increase of 23% over the same period last year. In the first half of 2020, the net debt ratio dropped to about 71.7%. The effect of reducing debt was significant, and the cash-to-debt ratio was maintained at 1.2 times. From January to July 2020, Dafa Real Estate successfully issued 350 million US dollars of priority notes, further optimizing the financial structure of the group. With healthy financial and capital levels, Dafa Real Estate has been recognized by domestic and foreign institutions.
In the first half of 2020, Moody's Corporation reiterated the international credit rating B2 of Dafa Real Estate and looked forward to maintaining stability.
Fourth, actively practice social responsibility and constantly increase the value of the brand
The growth of enterprises is closely related to the development of society. Dafa Real Estate actively practices its social responsibility and constantly thickens its brand value. In the first half of the year, Dafa Real Estate set up a 10 million yuan "fight against COVID-19" special fund to continue to purchase scarce medical supplies around the world to support prevention and control. In July, Dafa Real Estate responded positively to the Wuhu Municipal Government's call for emergency rescue and disaster relief and forged a "flood fighting assembly line". At the same time, Dafa Real Estate joined hands with Wenzhou TV Life Channel to hold "Zero distance, helping students" public welfare activities to help poor students.