Core ideas:

In 2020, Hongyang real estate sales are growing rapidly, which may lead to a rapid increase in the carry-over income of the company in the future. In the long run, the company's sales may maintain steady growth, the main reasons are: first, the company's survival ratio is 3.4, the existing land reserve can support the company's development needs in the next three to four years; as of the beginning of 2021, the company has a goods value of 140 billion yuan. There are plenty of available resources. Second, the company's land reserves in the Yangtze River Delta region account for 71%, and new first-and second-tier cities account for 74%. The high-heat metropolitan area and energy level layout can provide strong support for the sustained growth of sales in the future.

First, contract sales increased by 32.8% over the same period last year. For the first time in the Bohai Rim region, Hongyang Real Estate realized contract sales of 86.5 billion yuan in 2020, an increase of 32.8% over the same period last year. The sustained growth of sales led the company to further increase its operating income by 32.9% to 20.16 billion yuan in 2020. The company ploughs deeply and grows three horns, actively arranges high-quality metropolitan areas such as Dawan area, around Bohai Sea and Central China, and contributes sales performance for the first time around Bohai Sea in 2020.

Second, ploughing the metropolitan area, focusing on the layout of the new first-and second-tier core cities, more than 74% of the land reserves of Hongyang Real Estate are located in new first-and second-tier cities, and the Yangtze River Delta accounts for 71%. At the same time, the company increases investment in Zhejiang and Guangdong-Hong Kong-Macau Greater Bay Area, focusing on core cities such as Guangzhou, Foshan, Hangzhou and Ningbo. It is expected to provide strong support for future scale and income growth.

Third, the three red lines turn green, the money is abundant, and the solvency is strong. In 2020, the three red lines of Hongyang real estate turned green, and the net debt ratio decreased by 20pcts to 50.3% compared with the same period in 2019. By 2020, the company's monetary capital after deducting restricted funds was 12.42 billion yuan, an increase of 42.8% over the same period last year. Generally speaking, Hongyang Real Estate has plenty of cash and strong debt-paying ability.