Core views:

1. Land reserves are sufficient, and the high-energy layout supports performance growth

In the first half of 2021, Shangkun Real Estate achieved equity contract sales of 10.54 billion yuan, an increase of 29.8% over the previous year. It has a total land reserve of 7,771,000 square meters, an increase of 49.3% over the end of 2020. The land reserves are sufficient to guarantee the future sustainable development of the enterprise. Among them, Tier 1 and 2 cities account for 70% of land reserves; the Yangtze River Delta region accounts for 60%.

2. Lock in future revenue growth and actively seek profit growth points. Advance accounts received increased by 46.8% compared to the end of 2020 to 11.74 billion. In the future, as the project is carried over, this growth will gradually be passed on to the revenue side, locking in the long-term operating income growth of the enterprise. Under pressure on industry profit margins, Shangkun's net profit margin level remains resilient, and is continuously looking for new profit growth points, including developing diversified businesses and making organizational structure adjustments.

3. The financial structure is continuously optimized and the financing channels are further broadened

Monetary capital increased 37.0% from the end of 2020 to 7.31 billion, and the share of bank loans increased to 42.9% from nearly 30% at the end of 2020. Capital liquidity and financial security have all improved to a certain extent. Continuously broadened financing channels, actively explored green finance bonds, and achieved certain results.