Core ideas:

With steady sales growth and record revenue in 2021, we believe that there are four reasons why the company can maintain steady growth in the future:

First, deep ploughing in the area. While consolidating Anhui's market position, we will actively expand high-energy cities such as Nanjing and Wuxi in the Yangtze River Delta. The second is to accurately take the land. Adopt diversified ways to make the land reserve thicker and thicker. The third is product guarantee. Focus on product construction, customer-oriented, help to enhance brand influence and word-of-mouth communication. Fourth, improve quality and increase efficiency. Rely on the "1234 operation system" to improve operational efficiency.

First, seize the market window to achieve a steady increase in sales and revenue in 2021. Sanson Group achieved a sales amount of 7.41 billion yuan and a sales area of 872,000 square meters. At the same time, the refund rate remains at a high level, exceeding 90%. The company's carry-over income has increased rapidly, and Sanson's operating income reached 5.62 billion yuan in 2021, an increase of 42.3% over the same period last year. According to the distribution of income, the deep ploughing effect of Sanson is obvious, of which the company realized 1.48 billion yuan of carry-over income in Fuyang, accounting for 26.3% of the total operating income. By the end of 2021, the company has a contract liability of 9.55 billion yuan, which will continue to promote the company's performance growth with the delivery of the development property.

Second, the soil reserve is of high quality and abundant, and the layout extends to the core of the Yangtze River Delta. By the end of 2021, the company's land reserve has reached 3.7 million square meters, meeting the development needs in the next 4 years or so. From the distribution of land reserves, the proportion of soil reserves in Anhui is 76.7%, while that in Jiangsu is 19.4%. The company's layout is roughly from west to east and extends to the core of the Yangtze River Delta, which helps to spread the potential risks of the single market, expand fault tolerance, and maintain the size of the local market. it is conducive to further realizing performance growth through high-level cities.

Third, the net debt ratio is in the net cash state, the four major advantages ensure that the three red lines of steady development are all up to the standard, and the net debt ratio is in the net cash state. after deducting the pre-sale funds, the asset-liability ratio is only 66%, and the cash short-debt ratio is 1.2 times. The pressure of debt repayment during the year is relatively small. There are four reasons why the company can achieve steady development: first, regional deep ploughing. Second, take the land accurately. Third, product guarantee. Fourth, improve quality and increase efficiency.

Sanson Group achieved steady sales growth in 2021, and its operating revenue reached a new high. we believe that there are four reasons why the company can maintain steady growth in the future: first, regional ploughing. While consolidating Anhui's market position, we will actively expand high-energy cities such as Nanjing and Wuxi in the Yangtze River Delta. The second is to accurately take the land. Adopt diversified ways to make the land reserve thicker and thicker. The third is product guarantee. Focus on product construction, customer-oriented, help to enhance brand influence and word-of-mouth communication. Fourth, improve quality and increase efficiency.

Rely on the "1234 operation system" to improve operational efficiency.

First, seize the market window to achieve a steady increase in sales and revenue in 2021. In 2021, Sanson Group achieved sales of 7.41 billion yuan, an increase of 16.8 percent over the same period last year, and a sales area of 872,000 square meters, an increase of 15.6 percent over the same period last year. At the same time, the Sanson payback rate remains at a high level, exceeding 90% for a long time, mainly due to the company's emphasis on efficient operation. The average period for the first opening of the project is only 6 months, the average period for cash flow is 15 months, and the average start-up period for the region is only 4 months. As an Anhui real estate enterprise, on the basis of ploughing the Anhui market, the company successfully entered the Shandong and Jiangsu markets in 2018, and adopted the strategy of layout and ploughing to increase the brand communication and the sales scale steadily. We believe that the urban agglomeration of the Yangtze River Delta is the core area of the national real estate market, including the overall fundamentals of the urban market is good, the purchasing power of residents is strong, and the continuous expansion is conducive to the continuous release of sales performance. at the same time, the company has Anhui market as the backing, long-term ploughing to ensure the stability of the company.

Under such circumstances, the company achieved a rapid increase in carry-over income. In 2021, Sansun realized operating income of 5.62 billion yuan, an increase of 42.3% over the same period last year, a gross profit of 920 million yuan and a net profit of 260 million yuan. According to the distribution of income, the deep ploughing effect of Sanson is obvious, of which the company realized carry-over income of 1.48 billion yuan in Fuyang, accounting for 26.3% of the total operating income, followed by Lixin County, with operating income of 860 million yuan, accounting for 15.2% of the total operating income. By the end of 2021, the company has a contract debt of 9.55 billion yuan, which will continue to promote the company's performance growth with the continuous delivery of development properties.

All in all, we believe that the growth of sales and carry-over income comes down in the same line, and the increase in the amount of sales will lead to the increase of future operating income. San Sun has persisted in ploughing the Yangtze River Delta region dominated by Anhui for a long time. Compared with other real estate enterprises, it has more advantages in urban awareness and brand building, and it is easier to grasp the fluctuations of the local market. Timely adjustment is conducive to promoting high-quality development.

Second, the soil reserve is high-quality and abundant, and the layout extends to the core of the Yangtze River Delta. The land reserve of Sanson Group is high-quality and abundant. By the end of 2021, the company has 45 projects in 12 cities across the country, with a land reserve of 3.7 million square meters. To meet the development needs of the next 4 years or so. From the distribution of land reserves, the proportion of soil reserves in Anhui, Jiangsu, Shandong and other regions is 76.7%, 19.4%, 3.1% and 0.8%, respectively. It can be seen that the layout of the company is roughly from west to east, to the core of the Yangtze River Delta. We believe that the company's active external expansion will help to spread the potential risks of the single market and expand fault tolerance. San Sun will transfer its investment to high-energy cities such as Nanjing and Wuxi, which will help to better carry out the national layout through high-energy cities on the basis of maintaining the scale of Anhui's local market. In the future, as the provincial projects continue to contribute to sales, outside the city has opened sales, will further realize the performance growth.

Third, the net debt ratio is in the net cash state, and the four major advantages ensure steady development as private housing enterprises, the three red lines of the Sanson Group are all up to the standard, the net debt ratio is in the net cash state, and the asset-liability ratio after deducting pre-sale funds is only 66%. The company has monetary funds of 1.69 billion yuan, corresponding to short-term interest liabilities of 1.37 billion yuan, long-term interest liabilities of 230 million yuan, cash short-term debt ratio of 1.2 times, less debt repayment pressure during the year. With the abundant capital advantage of the company, during the downward period of the market, it has sufficient investment space to give it strategic adjustment and timely grasp the recruitment and auction linked market.

We believe that there are four reasons why the company can achieve long-term and steady development: first, regional ploughing. The company continues to consolidate Anhui's market position, at the same time actively expand the Yangtze River Delta Nanjing, Wuxi and other high-energy cities, through continuous ploughing to stabilize the market position. Second, take the land accurately. The company adopts diversified ways to obtain land, and the land reserve is constantly thickening, which is the basis for the realization of performance. Third, product guarantee. The company focuses on product construction, customer-oriented, helps to enhance brand influence and word-of-mouth communication. Fourth, improve quality and increase efficiency. Relying on the "1234 operation system", the company has effectively improved both the project start-up and the cash flow recovery cycle.