During the Period, the Group achieved a revenue of approximately RMB4,554 million, representing an increase of 21.8% YoY. The Group's gross profit increased by 58.6% YoY to RMB713 million, while the Group's gross profit margin increased by 3.7 percentage points to 15.7% as compared with the corresponding period last year, which was primarily due to the delivery of projects with higher gross profit attribution. The Group's profit for the six months ended 30 June 2020 recorded a significant increase of approximately 517.7% YoY to approximately RMB300 million. Net profit margin increased by approximately 5.3 percentage points YoY to approximately 6.6%, mainly due to the increase in revenue derived from sale of properties such as Honor Mansion, Bejoy Villa and Jiang Shan Yu Mansion, the increase in share of gains on joint ventures and associates, and the decrease in selling and distribution expenses, administrative expenses and provision for the land appreciation tax.

Adhered to the development strategy of "Cultivate the Yangtze River Delta" and further entry into the five regional markets

Yincheng International has always adhered to the development strategy of "based in Nanjing, cultivate the Yangtze River Delta and radiate the urban area", expanded its business from Nanjing to 10 core cities in the Yangtze River Delta Megalopolis, including Nanjing, Wuxi, Hangzhou, Suzhou, Wenzhou, Zhenjiang, Ma'anshan, Xuzhou, Hefei and Taizhou, which have been experiencing rapid economic development. During the Period, the Group further expanded into the five regional markets of Nanjing, Sunan, Zhejiang, Huaihai and Anhui. In the first half of 2020, the Group made its first foray into Wenzhou and Changshu and has acquired 2 land parcels with an aggregate GFA of over 150,000 sq.m., which led to a more balanced and coordinated business presence in the Yangtze River Delta Megalopolis.

During the Period, the Group successively obtained 6 high-quality land parcels which are mainly located in the core cities of the Yangtze River Delta Megalopolis such as Hangzhou, Hefei and Wenzhou, contributing to the Group's long-term and stable development in the future. As at 30 June 2020, the Group had a land bank with an aggregate GFA of over 5.5 million sq.m., out of which the land bank with interests attributable to the Group amounted to approximately 4.3 million sq.m.. Throughout the recent years, the Group has been actively searching for mergers and acquisitions and city-industry integration opportunities in the megalopolis. Currently, the Group has accumulated experience from projects such as the Nanjing Eastern Senior Living Health Industry Park, the Airport Exhibition Town Project in Lishui District and Nanjing Innovative Economic Industry Headquarters Cluster.

During the six months ended 30 June 2020, the contracted sales and the contracted sales GFA of the Group amounted to approximately RMB6,123 million and approximately 336,334 sq.m. respectively. Attributable to the higher average price of the projects launched during the Period, the contracted ASP increased by 18.2% YoY to approximately RMB18,205 per sq.m.. More than 60% of the contracted sales was derived from Nanjing which ASP reached approximately RMB21,689 per sq.m., representing a YoY increase of approximately 31.7%. Revenue recognized from sale of properties increased by 21.0% YoY to approximately RMB4,522 million, with ASP recognized amounted to approximately RMB17,550 per sq.m.. During the Period, the Group responded proactively to the challenges posed by the COVID-19 epidemic by adjusting its project launch schedule in a timely manner and promoting its business through various channels, including the adoption of "cloud property viewing", "cloud sales" and "cloud delivery" through online live broadcasting and small applications of the new media. Such approaches would bring convenience to property owners, while the Group could develop its online customer base and undergo digital transformation at the same time. Meanwhile, by virtue of the Group's excellent brand image and market recognition, various residential projects such as Qingyunfu and Dream Mansion of the Group were launched for sale in June and achieved excellent sales records of close to 80% sell-through rate was met on the first day of launch.

Gradually improvement in brand image and property development and operation capabilities recognized by capital market

With years of presence in the real estate market of the Yangtze River Delta Megalopolis, the Group has gradually gained recognition from the capital market for its excellent brand image and property development and operation capabilities. In May 2020, the Group has successively received an issuer credit rating by Moody's Investors Service, Inc. and Lianhe Ratings Global Limited as having a stable outlook with a credit rating of "B2" and "B+" respectively. Not only did such ratings reflect the capital market's recognition of the Group's performance, but also assisted the Group in further expanding its financing channels, optimizing its financial structure, and enhancing its overseas financing capabilities. Following the successful issuance of US$100 million senior notes at the end of 2019, the Group successfully issued senior notes in June 2020, which was oversubscribed by two times, reflecting the market's recognition on the Group's comprehensive strength and financial condition.

During the Period, the Group received various awards, including "Top 100 Real Estate Developers in China in 2020", "Specialized Chinese Real Estate Enterprise with Excellence in Operation in 2020" and "Top 100 Listed Property Companies in China in 2020". The Group's project, Yuan Stream Mansion, was also awarded "ICONIC AWARDS: Innovative Architecture" in Germany. Such awards were indications of recognition from authoritative organizations and industry experts on the Group's performance and its projects.

Enhancing comprehensive development and operation capabilities to build core competitiveness

Mr. Huang Qingping, the Chairman of Yincheng International, said "Currently, the market is still under recovery with uncertainties brought by the prevail of COVID-19 epidemic. The Group remains cautiously optimistic about the property market in the second half of the year. While the industry is facing pressure on property sales as a whole in the second half of the year, we will promptly adjust our sales strategies according to market needs without compromising on our high quality, seize market opportunities and set 'promoting sales and grasping returns' as a principal goal. We will continue our expansion in the Yangtze River Delta Megalopolis and focus on core cities such as Nanjing and Hangzhou and expand the breadth of projects by various means such as tendering land parcels, engaging in cooperative initiatives and mergers and acquisitions so as to achieve rapid growth in scale. The Group will also continue to cooperate with experienced local developers in joint development projects, so as to leverage their respective strengths, lower risks and create win-win situations.

Looking forward, the Group will enhance its comprehensive development and operation capabilities in respect of investment and financing, business development, sales and internal management to build its core competitiveness and accelerate sales for the realization of better project gains in a more efficient manner; as well as to showcase benefits of the Group's unique collaborative business development model. In view of the uncertainty in both domestic and foreign economic situation, Yincheng International is determined to enhance its capabilities in all aspects according to its long-term development strategies. We shall continue to strive with the goal of becoming a leading regional real estate enterprise and generating more fruitful returns for our shareholders."

Today, Yincheng International held the 2020 interim results presentation in Nanjing headquarter. Over 200 fund managers, equity analysts and reporters participated in the event. The management gave the introduction of interim results and answered the participants' questions.

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