Core ideas:

In 2020, Jinhui Holdings ushered in a major milestone in the history of enterprise development-successfully listed on the Hong Kong Stock Exchange, becoming the second listed real estate company in 2020, which is of great significance for the follow-up development of the company. Under the background of the deepening supervision of the real estate market, Jinhui Holdings adheres to the development strategy of "national layout, regional focus and urban leadership", and the land reserve presents a balanced layout, which is conducive to hedging policy fluctuations in the regional market. to lay a strong foundation for the stable improvement of the company's performance.

First, sales are close to 100 billion yuan, and South China in the Yangtze River Delta has performed well.

There are two main reasons for the company's outstanding sales performance in the Yangtze River Delta region and South China region: first, the Yangtze River Delta region is the first to recover under the influence of the epidemic. As the average market price is in a higher position, the overall sales amount is higher. Second, the company's sales in South China are mainly contributed by Fuzhou, and most of the projects laid out by the company in Fuzhou are located in the core areas such as Cangshan District and Jin'an District, driving the sales growth of the whole South China region.

Second, the balanced layout of the whole country to hedge against regional market fluctuations.

As of December 31, 2020, the total land reserve of the enterprise has reached 3072.7 million square meters, covering 32 core cities across the country, of which 94.7% are located in second-tier and third-tier core cities. From a regional point of view, the distribution of full-caliber land reserve of Jinhui Holdings is more balanced. In the environment of stricter supervision of the real estate market, a more balanced layout can effectively hedge against the market fluctuations caused by regulation and control policies, and with the continuous improvement of the domestic urbanization rate, the incremental real estate market in second-tier and core third-tier cities is relatively broad, which is conducive to the improvement of enterprise scale.

Third, the profitability is constantly improving, and the control and control of expenses are constantly strengthened.

With the steady growth of Jinhui Holdings' sales scale, the company's profit index has also increased. In 2020, the company's operating income reached 34.88 billion yuan, an increase of 34.3% over the same period last year. At the same time, with the rapid increase in the sales scale of the company, the amount of accounts received in advance rose from 56.69 billion yuan in 2019 to 69.09 billion yuan. Sufficient accounts received in advance locked most of the performance of the company in advance, which is an effective guarantee for the increase of profitability. In addition, the company's ability to manage and control expenses has been greatly improved, and the rate of financial expenses continues to decline, helping to improve the level of net profit margin.

Fourth, the "three red lines" have all turned green, and the rating continues to improve.

In 2020, Jinhui Holdings made it clear that "cash and profit-oriented management"

During the period, all the "three red lines" have been turned green. The capital inflow brought by IPO has brought great improvement to the debt structure of the company. We believe that the current strict financing environment, Jinhui Holdings clearly focus on cash, which is conducive to the long-term development of the company.

Based on the improvement of Jinhui Holdings' market position, the improvement of financial leverage and the high-quality and sufficient land reserve, a number of rating agencies have upgraded the company since 2020.