Outlook

During the first half of 2021, as the world situation of the COVID-19 pandemic (the "Pandemic") improved, the global economy gradually recovered, but showed a significant divergence and imbalance. In the face of a complex and volatile external environment, the PRC government has continued to consolidate and expand the achievements in prevention and control of the Pandemic, implemented macro-policies with precision, and promoted the sustained and steady economic recovery. Overall, the economy has been strengthened and improved while maintaining stability. According to the economic data for the first half of 2021 released by the PRC's National Bureau of Statistics, the PRC's GDP grew by about 12.7%, and its per capita nominal disposable income of national residents grew by about 12.6% over the same period last year. In the second quarter, the PRC's GDP grew by 7.9% and 1.3%, respectively over the same period last year and the first quarter of 2021, providing strong impetus for the world economic recovery.
 
In the first half of 2021, under its position of "housing is for living, not for speculation"(房住不炒), the PRC government has continuously improved its real estate austerity policies and successively issued regulations on the concentration of real estate loans (setting the upper limit of the proportion of real estate loans and the upper limit of the proportion of individual housing loans for five institution categories including seven large Chinese banks, 17 medium-sized Chinese banks, small Chinese banks, non-county rural cooperative institutions, county rural cooperative institutions and rural banks) and the "two concentration" policy for land supply in key cities (namely, centralised release of transfer announcements, limiting the release of residential land transfer announcements to a maximum of three times in 2021, and centralised organisation of transfer activities). In this way, the rapid rise of the real estate market has been controlled, and the growth of commercial housing sales has decelerated. Nevertheless, the growth of real estate development and investment remains resilient. The housing prices in the first-tier cities and the Greater Bay Area are still rising to varying degrees. The "two concentration" policy for land supply in key cities affects the pace of land supply, so the premium rate of land transactions is still high. Looking forward to the second half of the year, the demand of the real estate market will be affected by the austerity policies, and the growth rate of the sales area of commodity premises will continue to fall. The momentum of the real estate development and investment weakened with the growth rate slightly slowing down. The growth of housing price tends to stabilise. The market in the Greater Bay Area will continue to improve, and the demand for home purchase will drive a steady increase in transaction volume. In the long run, the persistently sound fundamentals of the PRC's economy coupled with steady property development and investment will continue to facilitate the stable and healthy growth of the Mainland China’s property sector.
 
The Group’s projects such as Shenzhen GDH City, Guangzhou Laurel House, Zhuhai Jinwan Project, Jiangmen Chenyuan Road Project, Jiangmen Ganhua Project, Huizhou Dayawan Project, Foshan Laurel House and Zhongshan GDH City are all located in the central cities of the Greater Bay Area or covered by the "Core, Coastal Belt and Zone Initiative", and will benefit from the strong development momentum of these areas. Through the development, construction and management of projects such as the Shenzhen GDH City and the Guangzhou Laurel House, the Group has strategically entered the markets of major cities in the Greater Bay Area such as Zhuhai, Jiangmen, Huizhou, Foshan and Zhongshan, developed sound cooperative relationships with the local governments, established professional development teams and an operating model for project development, and accumulated experience in acquiring land in a diversified manner. As the sole capital development platform for the property development business of Guangdong Province's largest offshore conglomerate, GDH Limited, the Group will combine its accumulated professional capabilities and industry experience, fully utilise the advantages of its provincial state-owned enterprise background and shareholder resources, and focus on diversified land acquisition and expansion modes, such as bidding, auction and quotation, coordinated development with shareholder resources, external cooperative development and renovation. It will continue to seek opportunities for acquiring quality development projects in the Greater Bay Area and proactively respond to fierce competition in the land acquisition market. Through strengthening standardised construction and management, increasing efficiency and reducing costs, the Group will increase efforts in brand building and enhancement and further enhance its product quality and competitiveness. It will formulate flexible and effective marketing strategies based on the actual market conditions to speed up project sales and destocking and effectively respond to the austerity policies of the real estate market. It will accelerate the establishment and development of operating properties, with a view to growing itself into an "influential property developer in the Greater Bay Area" and paving the way for the stable development of the Company in the long run.
 
Under the leadership of the Board, the Group is confident in the prospect of its business development and will actively promote the development of its property business in order to create greater returns for its shareholders as we did in the past.