2021 strong top-line growth, but slight miss in earnings. While total revenue grew by 50.2% YoY, CIFI’s gross profit margin was squeezed by 2.4 ppts YoY to 19.3%, and underlying profit dropped further by 9.2% YoY to RMB7.3 bn in 2021.
　　We believe that underlying profit is a little disappointing to the market, mainly due to margin contraction and smaller profit contribution from JVs and associates.
　　The management proposed "cash + share" dividend plan, at stable 35% dividend payout ratio. The Company is to reserve more cash on hand and this dividend payment method is likely to continue over the years.
　　Entered into the green category. CIFI first entered into the green category under the "three red lines". According to the management, after the bonds buyback in Mar. 2022, currently, CIFI’s short-term debt ratio was lowered to 12%. In addition, CIFI disclosed that attributable debt from cooperation projects amounted to RMB20.4 bn by end-2021, down by 19% from mid-2021.
　　Non-development business to accelerate. Under CIFI’s "concentric circle" （"同 心 圆 "） strategy, we believe that the Company should benefit from its strengthening diversified business to cover the winter. According to the management, in the Company’s long-term vision, the income from non-development business should account for around 30%-40% of its total income.