In the first half of 2024, facing the downward pressure of the real estate market in China, Zhong An Group Limited ("Zhong An Group" or the "Company", stock code: 672.HK), a leading real estate developer in the cni yangtze region, actively responded, adapted to the situation, continuously cultivated the cni yangtze region, optimized its business structure through empowerment and refinement, and promoted steady and good business operations, achieving resilient performance growth. During the period, the company's revenue was approximately RMB 9,282.9 million, an increase of 127.6% year-on-year; gross profit was approximately RMB 1,830.0 million, an increase of 161.7% year-on-year; and the gross profit margin was approximately 19.7%, an increase of 2.6 percentage points year-on-year.

Income doubled, 'weight loss' to build a solid safety baseline.

In the first half of 2024, in response to the weak sales situation in the real estate industry due to economic and market environment factors, Zhong An Group, with "guarantee delivery, stable operation, risk control" as its core, strengthened cost control, enhanced resource integration and team cooperation efficiency, launched the "Harvest Together, Seek Development" all-staff marketing activities to help achieve breakthroughs in sales performance and further enhance economic efficiency.

During the period, Zhong An Group's confirmed sales area was approximately 414,373 square meters, an increase of 136.8% year-on-year; the confirmed sales amount was approximately RMB 8,920.8 million, an increase of 145.9% year-on-year. At the same time, the average property sales price per square meter was approximately RMB 21,528, an increase of 3.9% year-on-year.

On the basis of reducing costs and increasing efficiency, Zhong An Group also focuses on 'weight loss', adopts a more cautious financial policy, maintains sufficient funds, and stable and healthy capital structure. As of June 30, 2024, the company's total assets were approximately RMB 42,394 million. The total asset liability ratio and net debt ratio were approximately 69.1% and 44.8% respectively, maintaining at a reasonable level.

Strengthening deep cultivation in the cni yangtze region cities, ensuring long-term supply of high-quality land reserves.

Following the strategic focus on 'urban cultivation' and 'quality cultivation', Zhong An Group continues to enrich its land reserves for long-term development needs. As of June 30, 2024, the company's total land reserve construction area was approximately 8.1 million square meters, with the cni yangtze region land reserves accounting for as high as 83%; there are over 40 projects for sale; the overall average acquisition cost of land reserves is approximately RMB 2,845 per square meter. The land reserves are of high quality, sufficient for development for over five years, effectively supporting the company's business expansion.

At the same time, Zhong An Group focuses on 'green, low-carbon, smart, safe' as core indicators, meticulously researches the six laws of 'community base, boundaryless corridors, boundaryless landscapes, boundaryless overhead structures, boundaryless apartments, boundaryless courtyards', continuously iterates product combinations, and builds Zhong An's 'good houses'. With multiple measures in place, in the first half of 2024, the company successfully delivered over 5,500 sets of properties, with a delivery area of 0.781 million square meters.

In addition, the "Jiuan Longevity" whole-life service system constructed by the company covers various aspects such as quality control, risk control, reliable delivery, ZAR membership, satisfaction management, pain points and concerns, and the 400 call center, truly providing owners with long-lasting and safe living. "Good service", customer satisfaction steadily improving. According to the China Urban Resident Residential Satisfaction Survey data from the China Index Research Institute, the overall satisfaction score of Zhongan Group in the first half of the year was 80.2, which was 8.6 points higher than the industry average.

With stable financial performance and comprehensive strength in internal and external development, Zhongan Group has once again been honored, further demonstrating its brand power. In the first half of 2024, the company won four honors awarded by the China Index Research Institute: "2024 Top 100 Real Estate Companies in China", "2024 Excellent Real Estate Management Safety Companies in China", "2024 Top 10 Investment Value Real Estate Companies Listed in Mainland China and Hong Kong", and "2024 Top 10 Financial Stability Real Estate Companies Listed in Mainland China and Hong Kong".

It is worth mentioning that in the first half of 2024, Zhongan Group adhered to the corporate values of "doing good deeds with a good heart and loving the world", actively participated in social welfare activities, and demonstrated corporate responsibility. As of June 30, 2024, the company has donated over 1 billion RMB, assisted over 2 million people, provided more than 0.021 million person-times of volunteer services through the Wings of the People program, and organized over 160 public welfare activities. Over the past 27 years, love has covered more than 10 cities in 4 provinces in China. The company has been rated as a "4A-level social organization" by the Zhejiang Provincial Civil Affairs Department, awarded the title of "advanced member unit" by the Zhejiang Provincial Charity Federation, and obtained the "FTI2023 full score" in the Foundation Center Network's "Transparent Index of Foundations". It has also been selected as a "good case of enterprise technology towards kindness in China 2023" by the E-commerce and Digital Economy Case Center of Higher Education.

Looking ahead, the road to the new type of urbanization in China is steadily advancing, and there is still room for high-quality development in the real estate industry. Zhongan Group will continue to seize the opportunity, fully leverage its diversified and synergistic strategic advantages, deeply root itself in the Yangtze River Delta region, and focus on providing a stable and solid foundation for sustainable development by ensuring that people have a good home and a good life.