Core ideas:

In recent years, the scale of Zhengrong property has grown rapidly, and its profitability has improved, while the financial structure has been continuously optimized. we believe that Zhengrong's quality growth model mainly comes from regional deep cultivation and high operational efficiency.

First, continuous + expansionary investment forms two deep ploughing areas

The Yangtze River Delta region is the main region that contributes to sales performance, followed by the west bank of the Taiwan Strait, and the two regions together contribute nearly 80% of the sales. We believe that the excellent performance of enterprises in these two regions stems from sustained investment in these two regions and strategic expansion within the region. The new land reserves of Zhengrong Real Estate from 2017 to 2019 have ups and downs, but the proportion of new land reserves in the Yangtze River Delta and the west bank of the Taiwan Strait has been in the forefront of the six regions, and Zhengrong Real Estate's investment in core cities has a good sustainability. In addition, Zhengrong Real Estate is also constantly expanding the deep ploughing radius, that is, taking the core city as the center, expanding to the periphery of the core city, from point to area, to achieve deep ploughing development in the region.

Second, high operational efficiency accelerates scale growth

Another advantage tag of Zhengrong Real Estate is its high operational efficiency, which is another sharp tool to promote the growth of enterprise scale. We believe that the high operational efficiency of Zhengrong Real Estate on the one hand is that enterprises are constantly optimizing their own organizational structure, on the other hand, three types of investment characteristics provide support for high operation. Specifically, there are strict standards for investment and access to land; the amount of land invested is moderate, which provides conditions for fast turnover; and the layout of high-energy cities provides demand-side support for de-transformation.

Third, regional deep ploughing and efficient operation go hand in hand, Zhengrong Real Estate achieves quality growth under the mode of regional deep ploughing and efficient operation, Zhengrong has achieved the improvement of scale, the growth of profits, and the optimization of financial quality. 2019 is the beginning of Zhengrong's new three-year strategy, and 2020 is the year of tackling key problems. In the new three-year strategy, enterprises also emphasize the need to achieve high-quality development in the three dimensions of scale, profit and financial structure. In fact, we can see that the development model of regional deep ploughing and efficient operation has brought certain results to enterprises.