Core views:

1. Sales focus on the Yangtze River Delta, the new first tier and second tier. In 2020, revenue increased steadily. In 2020, Shangkun Real Estate achieved a contract sales amount of 12.66 billion yuan, with a repayment rate of 91%. The main focus of contract sales is the Yangtze River Delta region, with new first-tier and second-tier cities accounting for 77%. High-quality growth in sales performance led to a steady increase in corporate revenue. In 2020, revenue was 8.19 billion yuan, an increase of 8.7% over the previous year, and a compound growth rate of 9.4% from 2018 to 2020.

2. Develop diversification and take local styles, and place equal emphasis on cooperation and rights

Shangkun continues to explore diversified local acquisition styles. In 2020, 3.06 million square meters of land reserves were added, and the share of land reserves acquired through tenders was only 40%. The share of land acquisition rights was increased, and the share of new land reserve rights reached 71% in 2020.

3. Focus on laying out the three major economic circles. High turnover supports the growth of land reserves in terms of investment layout, and continues to be deeply cultivated in the three major economic circles, while at the same time focusing on other dynamic economic circles. In terms of investment, Shangkun focuses on the timing of land acquisition and steps up efforts in due course. Turnover remained high under the pandemic. The inventory turnover rate reached 0.492, which is far higher than the average level of E50 housing enterprises in 2019.

4. The net debt ratio fell to 54.3%, and the debt structure was continuously optimized

The net debt ratio fell sharply by 65.5 percentage points to 54.3%, and the three red line indicators improved markedly. Specifically, judging from its financial structure, Shangkun took the initiative to adjust the long-term and short-term debt structure, and the share of short-term interest-bearing debt fell by 36.1 percentage points to 26.6%.