Core views:

1. Maintain the leading edge of the base business and actively reduce investment efforts. In 2021, Jinke Co., Ltd.'s contract sales amount was 184 billion yuan, down 17.6% from the previous year. The base base, Chongqing, still maintained its leading edge, with sales exceeding 10 billion yuan and a market share of more than 10%. In terms of investment, the investment ratio calculated by amount is 0.2, a significant decrease from previous years. However, the total saleable area of the enterprise currently exceeds 65 million square meters, and normal development within 2-3 years is guaranteed.

2. Settlement performance is under short-term pressure. The future will continue to gain strength in the contract construction sector due to factors such as relatively high local goods for settlement projects, inventory impairment and declining investment income from joint ventures. In 2021, the gross profit margin of Jinke Co., Ltd. was 17.2%, down 6.1 percentage points, and the net profit margin was 6.0%, a decrease of 5.1 percentage points. The diversified business is developing steadily, and Jinke Co., Ltd. clearly stated that it will continue to make efforts in the contract construction field as one of the important elements of the new growth model.

3. The level of debt has declined. Actively respond to debt maturing within the year. In 2021, Jinke's net debt ratio and balance ratio after excluding advance payments were 69.5% and 69.2% respectively, down 5.6 percentage points and 0.7 percentage points respectively from 2020. The short-term cash debt ratio fell below 1 times. However, enterprises are actively raising capital, and will mainly deal with debt during the year through two aspects of repayment and strengthening operating repayment.