– 1 –

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

MIDEA REAL ESTATE HOLDING LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3990)

美的置業控股有限公司

INTERIM RESULTSFOR THE SIX MONTHS ENDED 30 JUNE 2020

FINANCIAL HIGHLIGHTS

• DuringtheReportingPeriod,revenueamountedtoRMB20,936.62million,representingan increaseof47.5%ascomparedwithRMB14,194.85million for thecorrespondingperiodof2019.

• During theReporting Period, gross profit amounted toRMB5,523.79million,representing an increase of 8.5%as comparedwithRMB5,093.34million for thecorrespondingperiodof2019.

• During theReportingPeriod, profit and total comprehensive incomeamounted toRMB2,354.24mill ion, representing an increase of 24.6% as compared withRMB1,888.76millionforthecorrespondingperiodof2019.

• During theReportingPeriod, corenet profit* amounted toRMB2,356.97million,representingan increaseof24.7%as comparedwithRMB1,889.37million for thecorrespondingperiodof2019.

• DuringtheReportingPeriod,earningspershareattributabletoownersoftheCompanyamountedtoRMB1.64,representinganincreaseof10.1%ascomparedwithRMB1.49forthecorrespondingperiodof2019.

• During theReportingPeriod,contractedsalesof theGroupand its jointventuresandassociatesamounted toapproximatelyRMB48.20billion, representingan increaseof2.1%ascomparedwithRMB47.20billionforthecorrespondingperiodof2019.

• Asat30June2020,thetotalGFAoftheGroup’slandreservesreached54.31millionsquaremetres,comprising295propertydevelopmentprojects,covering61citiesin18provincial-leveladministrativedivisionsacrossChina,67ofwhichwereparticipatedthroughjointventuresandassociates.

* Core net profit represents profit excluding the post-tax gains arising from changes in fair value ofinvestmentproperties.

–2–

INTERIM DIVIDEND

TheBoardhasresolvednottodeclareaninterimdividendforthesixmonthsended30June2020(forthecorrespondingperiodof2019:Nil).

Theboardofdirectors (the“Board”or the “Director(s)”)ofMideaRealEstateHoldingLimited (the “Company”) hereby announces the unaudited consolidated results of theCompanyand its subsidiaries (the“Group”) for the sixmonths ended30 June2020 (the“Reporting Period”),withthecomparativefiguresforthecorrespondingperiodof2019.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

UnauditedSix months ended 30 June

2020 2019Note RMB’000 RMB’000

Revenue 3 20,936,620 14,194,850Costofsales 4 (15,412,831) (9,101,508)

Gross profit 5,523,789 5,093,342

Otherincomeandgains—net 5 413,155 270,813Sellingandmarketingexpenses 4 (1,259,503) (1,045,473)Administrativeexpenses 4 (1,262,958) (1,030,663)Netimpairmentlossesonfinancialassets (20,850) (22,331)

Operating profit 3,393,633 3,265,688

Financeincome 6 160,183 92,688Financecosts 6 (40,678) (10,615)

Financeincome—net 6 119,505 82,073Shareofresultsofjointventuresandassociates 198,027 90,013

Profit before income tax 3,711,165 3,437,774Incometaxexpenses 7 (1,356,930) (1,549,015)

Profit for the period 2,354,235 1,888,759

–3–

UnauditedSix months ended 30 June

2020 2019Note RMB’000 RMB’000

Profit attributable to:OwnersoftheCompany 2,024,099 1,769,384Non-controllinginterests 330,136 119,375

Total comprehensive income for the period 2,354,235 1,888,759

Total comprehensive income attributable to:OwnersoftheCompany 2,024,099 1,769,384Non-controllinginterests 330,136 119,375

2,354,235 1,888,759

Earnings per share for profit attributable to owners of the Company (expressed in RMB per share)

Basic and diluted earnings per share 8 1.64 1.49

–4–

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

Unaudited Audited30 June

202031December

2019Note RMB’000 RMB’000

ASSETSNon-current assetsProperty,plantandequipment 1,205,919 1,199,369Investmentproperties 1,772,795 1,737,291Right-of-useassets 471,183 529,632Intangibleassets 148,839 146,719Propertiesunderdevelopment 2,947,686 2,670,275Investmentsinjointventures 7,857,884 6,074,679Investmentsinassociates 5,381,016 4,685,994Financeleasereceivables 38,690 26,421Deferredincometaxassets 2,757,276 2,333,448

22,581,288 19,403,828

Current assetsInventories 67,847 49,270Contractassetsandcontractacquisitioncosts 3(a) 1,960,818 1,496,830Propertiesunderdevelopment 140,552,697 142,697,242Completedpropertiesheldforsale 8,900,551 8,767,493Tradeandotherreceivables 10 41,009,459 36,205,754Prepaidtaxes 13,025,159 12,244,457Financialassetsatfairvaluethroughprofitorloss 11 1,942,954 1,913,355Restrictedcash 6,083,260 7,697,191Termdepositswithinitialtermsofoverthreemonths – 141,159Cashandcashequivalents 19,913,188 19,097,265

233,455,933 230,310,016

Total assets 256,037,221 249,713,844

–5–

Unaudited Audited30 June

202031December

2019Note RMB’000 RMB’000

EQUITYEquity attributable to owners of the CompanySharecapitalandpremium 12 7,654,595 9,465,989Otherreserves 1,898,536 1,875,120Retainedearnings 10,332,629 8,308,530

19,885,760 19,649,639

Non-controllinginterests 14,803,231 11,488,654

Total equity 34,688,991 31,138,293

LIABILITIESNon-current liabilitiesCorporatebonds 5,910,022 8,049,059Bankandotherborrowings 38,694,522 37,466,454Leaseliabilities 129,472 199,662Deferredincometaxliabilities 1,376,793 1,548,454

46,110,809 47,263,629

Current liabilitiesContractliabilities 3(b) 93,863,011 84,891,715Corporatebonds 6,056,368 2,437,720Bankandotherborrowings 5,451,588 6,698,484Leaseliabilities 61,375 49,830Tradeandotherpayables 13 64,340,173 71,823,898Currentincometaxliabilities 5,464,906 5,410,275

175,237,421 171,311,922

Total liabilities 221,348,230 218,575,551

Total equity and liabilities 256,037,221 249,713,844

–6–

NOTES

1 BASIS OF PRESENTATION AND PREPARATION

This InterimFinancial Informationhasbeenprepared in accordancewith theHongKongAccountingStandard(“HKAS”)34,‘Interimfinancialreporting’.ThisInterimFinancialInformationshouldbereadinconjunctionwith the annual consolidated financial statementsof theCompany for theyear ended31December2019 (“2019 Financial Statements”),whichhavebeenprepared inaccordancewith theHongKongFinancialReportingStandards (“HKFRS”)anddisclosure requirementsof theStockExchangeofHongKongLimited,andanypublicannouncementsmadeby theCompanyduring the interimreportingperiod.

2 SIGNIFICANT ACCOUNTING POLICIES

Theaccountingpoliciesappliedareconsistentwith thoseof2019FinancialStatements, except for theadoptionofnewandamendmentstotheHKFRSeffectiveforthefinancialyearbeginning1January2020.

(a) New and amended standard adopted by the Group

Anumberofneworamendedstandardsbecameapplicableforthecurrentreportingperiod.TheGroupdid not have to change its accountingpolicies ormake retrospective adjustments as a result ofadoptingthesestandards.

(b) New standards and amendments to existing standards have been issued but not yet effective and have not been early adopted by the Group

Effective for accounting

periods beginningon or after

AmendmenttoHKFRS16 Covid-19—relatedrentconcessions 1June2020HKFRS17 Insurancecontracts 1January2021AmendmenttoHKFRS3 ReferencetotheconceptualFramework 1January2022AmendmenttoHKAS16 Property,plantandequipment—proceeds

beforeintendeduse1January2022

AmendmenttoHKAS37 Onerouscontracts—costoffulfillingacontract 1January2022AnnualImprovementsto HKFRSStandards2018-2020

1January2022

AmendmenttoHKAS1 Classificationofliabilitiesascurrentor non-current

1January2023

AmendmentstoHKFRS10and HKAS28

Saleorcontributionofassetsbetweenan investoranditsassociateorjointventure

Tobedetermined

NoneoftheseisexpectedtohaveasignificantimpactontheGroup’saccountingpolicies.

–7–

3 REVENUE AND SEGMENT INFORMATION

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Propertydevelopmentandsales 20,533,533 13,884,154Propertymanagementservices 346,445 214,469Investmentandoperationofcommercialproperties—Propertyleaseincome 26,402 27,079—Hoteloperation 3,360 5,049—Cultural-tourismproject 26,880 64,099

20,936,620 14,194,850

Representedby:

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Revenuefrompropertydevelopmentandsales:—Recognisedatapointintime 15,860,755 8,684,677—Recognisedovertime 4,672,778 5,199,477

20,533,533 13,884,154

Revenuefromrenderingofservices:—Recognisedovertime 376,685 283,617

Revenuefromothersources:—Propertyleaseincome 26,402 27,079

20,936,620 14,194,850

Over95%oftheGroup’srevenueisattributabletothePeople’sRepublicofChina(the“PRC”)marketandover 95%of theGroup’s non-current assets are located in thePRC.Nogeographical information isthereforepresented.

TheGrouphas a largenumberof customers, noneofwhomcontributed10%ormoreof theGroup’srevenue.

–8–

(a) Details of contract assets and contract acquisition costs

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Contractassetsrelatedtopropertydevelopmentandsales(i) 1,339,786 972,568Contractacquisitioncosts(ii) 621,032 524,262

Totalcontractassetsandcontractacquisitioncosts 1,960,818 1,496,830

(i) Contractassets related topropertydevelopmentandsalesconsistofunbilledamount resultingfromsaleofpropertieswhen revenue recognisedover timeexceeds theamountbilled to thepropertypurchasers.

(ii) Managementexpects to recover thecontractacquisitioncosts,primarily salecommissionsandstamp duty paid/payable, as a result of obtaining the property sale contracts. TheGroupcapitalised these incrementalcostsandamortised themwhen the related revenue is recognised.Theamountofamortisationfor thesixmonthsended30June2020wereRMB151,983,000(sixmonthsended30June2019:RMB108,517,000).Therewasnoimpairmentlossinrelationtothecostscapitalised.

(b) Contract liabilities

TheGrouphasrecognisedthefollowingrevenue-relatedcontractliabilities:

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Contractliabilities 93,863,011 84,891,715

TheGroup receivespayments fromcustomersbasedonbillingscheduleasestablished incontracts.Paymentsareusually received inadvanceof theperformanceunder thecontractswhicharemainlyfrompropertydevelopmentandsales.

–9–

4 EXPENSES BY NATURE

Expenses included in costof sales, selling andmarketingexpenses andadministrative expenseswereanalysedasfollows:

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Costofpropertydevelopmentandsales— includingconstructioncost, landcost,capitalisedinterestexpenses 15,005,235 8,867,691Employeebenefitexpenses 955,233 943,622Marketingandadvertisingexpenses 720,511 419,547Write-downsofpropertiesunderdevelopmentandcompletedproperties heldforsale 253,205 –Amortisationofcontractacquisitioncosts(note 3(a)) 151,983 108,517Taxesandsurcharges 155,227 121,529Depreciationandamortisation 104,412 94,103Propertymanagementfees 46,127 38,240Auditor’sremuneration—Interimreviewservices 1,400 1,400Travellingandentertainmentexpenses 42,899 71,735Officeexpenses 22,044 77,807Others 477,016 433,453

Total 17,935,292 11,177,644

5 OTHER INCOME AND GAINS — NET

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Other incomeManagementandconsultingserviceincome 185,437 77,946Governmentsubsidyincome 40,929 4,245Compensationincome 38,809 126,094

265,175 208,285

Other gains — netRealisedandunrealisedgainsonfinancialassets atfairvaluethroughprofitorloss 126,725 56,397Lossesarisingfromchangesinfairvalueofinvestmentproperties (3,641) (813)Lossesondisposalofajointventure (5,812) –(Losses)/gainsondisposalofproperty,plantandequipment, investmentpropertiesandintangibleassets (114) 155Netforeignexchangegains/(losses) 16,833 (7,940)Others 13,989 14,729

147,980 62,528

Other income and gains — net 413,155 270,813

–10–

6 FINANCE INCOME — NET

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Financecosts —Interestexpenses —Bankandotherborrowings (1,264,210) (1,407,884) —Corporatebonds (353,958) (272,566) —Leaseliabilities (6,276) (7,647)

(1,624,444) (1,688,097) Less: —Capitalisedinterest 1,624,444 1,688,097 —Netforeignexchangelossesonfinancingactivities (40,678) (10,615)

(40,678) (10,615)

Financeincome —Interestincome 160,183 92,688

Financeincome—net 119,505 82,073

7 INCOME TAX EXPENSES

Six months ended 30 June2020 2019

RMB’000 RMB’000(Unaudited) (Unaudited)

Currentincometax: —Corporateincometax 1,323,494 1,214,511 —PRClandappreciationtax(“LAT”) 648,664 948,954

1,972,158 2,163,465

Deferredincometax —Corporateincometax (615,228) (614,450)

1,356,930 1,549,015

– 11 –

Note:

Incometaxexpenseisrecognisedbasedonmanagement’sestimateoftheweightedaverageeffectiveannualincometaxrateexpectedforthefullfinancialyear.Theestimatedaverageannualtaxrateusedfortheyearto30June2020is37%,comparedto45%forthesixmonthsended30June2019.Thetaxratewaslowerin2020duetothedecreaseinLATexpenseasaresultofthedropingrossprofitmargin.

Asat30 June2020, the retainedearningsof theGroup’sPRCsubsidiariesnotyet remitted toholdingcompanies incorporatedoutside thePRC, forwhichnodeferred income tax liabilityhadbeenprovided,wereapproximatelyRMB10,817,782,000 (31December2019:RMB8,734,814,000).Suchearningsareexpected tobe retainedby thePRCsubsidiaries for reinvestmentpurposesandwouldnotbe remitted totheiroverseasholdingcompanies in theforeseeablefuturebasedonmanagement’sestimationsofdemandforoverseasfunding.

8 EARNINGS PER SHARE

Six months ended 30 June2020 2019

(Unaudited) (Unaudited)

ProfitattributabletoownersoftheCompany(RMB’000): 2,024,099 1,769,384

Weightedaveragenumberofordinarysharesinissue(thousands) 1,230,567 1,190,567

Earningspershare—Basic(RMBpershare) 1.64 1.49

TheCompanyhadnodilutivepotentialsharesinissueduringthesixmonthsended30June2020and2019,thusthedilutedearningspershareequalledthebasicearningspershare.

9 DIVIDENDS

TheBoardofDirectorshas resolvednot todeclarean interimdividend for thesixmonthsended30June2020(sixmonthsended30June2019:nil).

10 TRADE AND OTHER RECEIVABLES

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Included in current assets: Tradereceivables—net(note (a)) 1,175,783 1,203,717 Otherreceivables—net 31,537,482 30,431,785 Prepaymentsforlanduserights 7,072,648 3,744,866 Otherprepayments 1,223,546 825,386

41,009,459 36,205,754

Asat30June2020and31December2019,thefairvalueoftradeandotherreceivablesapproximatedtheircarryingamounts.

–12–

(a) Details of trade receivables are as follows:

As at Asat30 June

202031December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Tradereceivables—relatedparties 202,678 144,646Tradereceivables—thirdparties 1,004,192 1,092,990Less:allowanceforimpairment (31,087) (33,919)

Tradereceivables—net 1,175,783 1,203,717

Aginganalysisof thegross trade receivablesbasedon invoicedateat thebalancesheetdateareasfollows:

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Within90days 752,554 924,707Over90daysandwithin180days 67,341 47,711Over180daysandwithin365days 118,810 15,641Over365days 268,165 249,577

1,206,870 1,237,636

TheGroup’stradereceivablesaredenominatedinRMB.

Trade receivablesmainly arise fromproperty development and sales. Proceeds frompropertydevelopmentandsalesaregenerally received inaccordancewith the termsstipulated in thesaleandpurchaseagreements.Thereisgenerallynocreditperiodgrantedtothepropertypurchasers.

TheGroupappliesthesimplifiedapproachtoprovideforexpectedcreditlossesprescribedbyHKFRS9.For the sixmonthsended30 June2020, reversalofRMB2,832,000 (sixmonthsended30 June2019:provisionofRMB9,283,000)weremadeagainstthegrossamountoftradereceivables.

–13–

11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Investmentsinwealthmanagementproducts (note (a)) 1,730,730 992,700Investmentsinassetmanagementschemes (note (a)) 101,000 786,475Investmentsinlistedequitysecurity 37,074 61,304Others 74,150 72,876

1,942,954 1,913,355

(a) Investments inwealthmanagementproducts and assetmanagement schemesmainly representedinvestments in certain financial instruments issued by commercial banks and other financialinstitutionswhichhadnoguaranteed returns.The fairvaluesof these investmentsweredeterminedbased on the statements provided by the counter parties. The ranges of return rates of theseinvestmentsasat30June2020were1.30%to5.22%(31December2019:0.30%to5.22%).

12 SHARE CAPITAL AND PREMIUM

Number of ordinary

shares

Nominal value of

ordinary shares

Equivalent nominal value of

ordinary shares

Share premium Total

Note HKD’000 RMB’000 RMB’000 RMB’000

AuthorisedOrdinaryshareofHKD1.00 eachuponincorporation 1,000,000,000 1,000,000 – – –Increaseinauthorised sharecapital 1,000,000,000 1,000,000 – – –

2,000,000,000 2,000,000 – – –

Issued and fully paidAt31December2018and 1January2019 1,190,567,000 1,190,567 1,005,366 7,781,713 8,787,079Placingofshares 40,000,000 40,000 35,943 642,967 678,910

At 31 December 2019 and 1 January 2020 1,230,567,000 1,230,567 1,041,309 8,424,680 9,465,989

Dividendsdeclared toshareholders (a) – – – (1,811,394) (1,811,394)

At 30 June 2020 1,230,567,000 1,230,567 1,041,309 6,613,286 7,654,595

–14–

(a) On30March2020, theboardofdirectorsof theCompany recommended thepaymentof a finaldividendofHK$1.60persharefortheyearended31December2019(2018:HK$1.2253pershare)outof the share premiumaccount of theCompany,whichwas approvedby the shareholders of theCompanyattheannualgeneralmeetingheldon29May2020.

13 TRADE AND OTHER PAYABLES

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Tradepayables(note (a)) 28,398,681 32,477,765—relatedparties 50,491 22,793—thirdparties 28,348,190 32,454,972Amountsduetorelatedparties 12,368,554 10,554,551Amountsduetonon-controllinginterests 9,334,177 17,196,319Outstandingacquisitionconsiderationspayable 1,766,171 1,867,489Depositpayables 2,169,788 1,624,857Accruedexpenses 854,158 592,301Salariespayable 680,684 1,114,310Interestspayable 442,193 713,068Othertaxespayable 5,092,028 4,396,479Dividendspayabletoshareholders 1,811,394 –Otherpayables 1,422,345 1,286,759

64,340,173 71,823,898

(a) The aging analysis of the trade payables based on invoice dates is as follows:

As at 30 June

2020

Asat31December

2019RMB’000 RMB’000

(Unaudited) (Audited)

Within90days 14,740,260 25,668,865Over90daysandwithin365days 13,204,585 6,033,564Over365days 453,836 775,336

28,398,681 32,477,765

TheGroup’s tradeandotherpayablesasat30June2020and31December2019aredenominatedinRMB.

–15–

BUSINESS REVIEW AND OUTLOOK

BUSINESS REVIEW FOR THE FIRST HALF OF 2020

Interim Results

During theReportingPeriod, theoutbreakofCOVID-19 (the“Epidemic”)posedahead-oncollisiontothemacroeconomyandrealestateindustry.TheGroupachievedsteadyoperationonthebasisofscale layout.With theexternalenvironmentfullofuncertaintiesandindustrycompetitionentering intoadeep-waterzone, theGrouphad toconcentratemoreonbuildingoperational quality and its owncore competitiveness, firmly adhering to city expansionthroughpenetration and cityupgrades, optimising theurban layout structure, accuratelycontrollingthepaceofdevelopment,strictlycontrollingassetquality,strengtheningthevalueofitsproductsandservices,andbuildingthebusinessevaluationsystemwithROIC(returnoninvestedcapital)atthecore,andtheeffectsofourqualitygrowthwerestartingtoshow.

During theReportingPeriod, theGroupachievedperformancegrowthbucking the trendandmaintained steady increase in profits, and continued to lower leverage, resulting in anupgradingofitscomprehensivecapabilities.TheGroup’srevenueamountedtoRMB20,936.62million,representinganincreaseof47.5%ascomparedtothecorrespondingperiodof2019;grossprofitamountedtoRMB5,523.79million,representinganincreaseof8.5%ascomparedto thecorrespondingperiodof2019.During theReportingPeriod, thecorenetprofitof theGroupamountedtoRMB2,356.97million,representinganincreaseof24.7%ascomparedtothe corresponding period of 2019.As at 30 June 2020, the gearing ratiowas 86.8%,representingadeclineof2.2%ascomparedtotheendof2019.

Business Review for the Reporting Period

(I) Review of the Real Estate Industry

The Chinese government continued to adhere to “housing is not for speculation” and housing regulations varying by city was more practical.With the emphasis onrequiringlocalgovernmentstoshoulderprimaryresponsibilityandachievingthegoalofstabilising land prices, housing prices, andmeeting public expectations, localgovernments still adhered to the bottom line of policies such as lending curbs andpurchase restrictions.Nonetheless, thehousingpolicybecamemoreviable followingrelaxingofresidencypolicyandissuingofhousingpurchasesubsidies.

The industry’s V-shaped reversal had strong resilience and urban differentiation was obvious.TheEpidemiccausedagreater impacton the realestatemarket,butaftertheEpidemiceased, therewasa rapid releaseof thebacklogofhousingdemand.Realestate transactionshelped themarket recovery frombothendsof supplyanddemand,though therewasan intensificationof thedifferentiationbetweencities.Tier-one,coretier-twoandtier-threecitiesassumedarelativelyrapidrecovery,whileweaktier-twoandvasttier-threeandtier-fourcitiescameundersignificantpressure.

–16–

The real estate financing policy remained stable and the overall financing interest rate dropped. Thecentralbankcontinued touseactivemonetarypolicy tomaintainreasonableand sufficient liquidity. In the firsthalfof theyear, theonshore financialenvironmentwasmarginallyloose,andtheoverallfinancinginterestratehaddropped.

As premium plots entered the market in a concentrated manner, the land auction market was in high demand.Under the loosemonetarypolicy, thecapitalpositionofsome real estatecompanies improved.Thiscombinedwithpremiumplots inhot-spotcities entering themarket in a concentratedmanner, caused real estate companies tobecomequiteenthusiasticaboutacquiringland.

(II) Sales Performance

Sales grew against the trend.TheGrouptooktheinitiativetoexpanditscustomerbase,andmarketing throughmultiple routesbycombiningonlineandofflinechannels,usingscientificmethod toarrangepromptproduct supply,andaggressivelyachievinggreaterperformance, therebyoffsetting the impactof theEpidemicon theGroup’s sales in thefirstquarter.DuringtheReportingPeriod,thecontractedsalesoftheGroupanditsjointventuresandassociatesreachedapproximatelyRMB48.20billion,buckingthetrendandrepresentinganincreaseof2.1%ascomparedto thecorrespondingperiodof2019,withthe ranking increasingby3places (data source:CRIC’sListofTop200ChineseRealEstateCompaniesbySales for the first half of2020); also the contracted sales areareachedapproximately4.379millionsquaremetres.Benefitingfromtheentryofprojectsinhigher-tieredcitiesand the rapid increase inproductcapabilities, theaveragesellingprice achievedRMB11,008 per squaremetre, representing an increase of 5.6% ascomparedtothecorrespondingperiodof2019.

The Yangtze River Delta region posted strong sales growth. In theYangtzeRiverDeltaregion,therealestateindustryrecoveredrapidlyduetoitsvasteconomichinterlandandlargemarketcapacity.TheGroupreapedthereturnsfromitsforward-lookinglayoutin theYangtzeRiverDelta region.During theReportingPeriod, theGroup’scontractedsales in theYangtzeRiverDelta regionwasRMB22.41billion, representingan increaseof37.2%ascomparedtothecorrespondingperiodof2019.

Dividends from city expansion through penetration were reaped. DuringtheReportingPeriod,citieswithdeeppenetrationhad increasinglycontributed to theGroup’s results.Forexample,wehavepenetrated intocitiessuchasXuzhouandHandanfor thepast10years,whichhadachievedgoodsales results in the firsthalfof theyear.Thecustomerreputationaccumulatedovertheyearshadincreasedthebrandpremium.

Results from city upgrade strategies were showing. During theReportingPeriod,projects innewly-includedhigher-tieredcitieshadentered themarketoneafteranother,gainingmarket favourability.Benefiting from the strategyof cityupgrades in recentyears, theproportionofcontributionof results fromnewly-includedhigher-tieredcitiessuchasHangzhouandDongguan increasedduring theReportingPeriod,with tier-one/strongtier-twocitiesaccountingfor29%,andtier-twocitiesaccountingfor43%.

–17–

(III) Business Layout

During theReportingPeriod, theGroup responded tomarket changes, continued toimplement the strategiesof regionalexpansion throughpenetrationandcityupgrades,adheredtothestrategiesofdeterminingproductionandinvestmentbasedonsalesfigures,soas tomake remarkableachievements in structural adjustmentof land reservesandachieveamorerationallandreservelayout.Asat30June2020,thetotalgrossfloorarea(“GFA”)oftheGroup’slandreserves*reached54.31millionsquaremetres,comprising295 property development projects , covering 61 ci t ies in 18 provincial- leveladministrativedivisionsacrossChina.

(IV) Financial Performance

DuringtheReportingPeriod,theGrouphadcontinuouslyreduceditsfinancingcostsandimproveditsrating,activelyreducedleverageandimprovedtheefficiencyofitsfinancialmanagement, therebyproviding sufficient financial support for theGroup’s steadydevelopment.

Financing costs hit a record low, and financing competitiveness was strengthened. DuringtheReportingPeriod,MideaRealEstateGroupLimited(美的置業集團有限公司) (“Midea Real Estate Group”),amajorsubsidiaryoftheGroupgainedanAAAratingasassessedbyUnitedCreditRatingsCo.,Ltd., thesecondAAAratingacquiredbyMideaRealEstateGroup.During theReportingPeriod, theweightedaverageeffective interestrateof theGroup’s totalborrowings furtherdecreased to5.52%,ofwhich theweightedaverageeffective interest rateofnewborrowingswas5.18%.MideaRealEstateGroupseized thewindowofopportunity in the firsthalfof theyearand successfully issuedcorporatebondswithacouponrateaslowas4.0%,representingadecreaseof120basispoints as compared to theprevious issuance, and settinga record lowof theGroup’scorporatebonds’couponrate.

Financial resources were ample, and leverage level was further reduced.Asat30June2020, theGrouphad totalcashandbankdepositsofRMB25,996.45million,andunusedcredit facilities frombanksofRMB87,410.00million.Asat30June2020, theGroup’sgearingratiowas86.8%,representingadecreaseofapproximately2.2%fromtheendof2019.

(V) Operational Measures

Starting off the new year, the Group continued to inherit and upholdMidea’smanufacturingDNA.Througha seriesofmeasures, suchasprecise investment, refinedmanagement, leanoperations,productcapabilitiesupgrades, “twosecondarybusinesslines”(兩翼)industryempowerment,etc.,theGroup’soperationalefficiency,capabilitiesinproducts,serviceandmarketingwerealleffectivelyimproved,whichstrengthenedthemodelofsteadyandhigh-qualitygrowth.

* Propertiesheldbyour jointventures/associatesofwhich the totalGFAof the land reserveshasbeendiscountedinproportiontoownershippercentage.

–18–

Precise investments and insistence on city expansion through penetration and upgrades.TheGroupcontinuedtogainfurtherpenetrationincities thatare in linewithitsdeeppenetrationstrategyandpossessdevelopmentpotential, thusobtaininghigherbrandpremiumsandprofit realisation.During theReportingPeriod, theproportionofnewlyacquiredlandreserveswhichwerelocatedintier-twoorabovecitiesreached85%,which strengthened the resultsof theGroup's strategyofcityupgrades, improved theproductioncapacityofasinglecity,reasonablycontrolledthetotalnumberofcities,andacquiredsuitablelandattherighttime,thusmaintainingappropriatelandreserves.

Lean productions and optimisation of operational leverage.Through standardisedmanagementaction,dynamicbalancemanagementof supply, inventoryand salesandeffectivecoordinationbetween large-scaleoperationsand large-scaleproductionwereachieved.Asproductionwasdeterminedbysales,wesuppliedourproductseffectivelythroughplanningmanagement,andcontrolledourinventorytosalesratiowithinahealthyrange.Weestablishedafull-caliberplanningmanagementsystemtoaccuratelytrackthecommencement,supply,revenuerecognitionanddeliverystatusofbuildings,andtoraiserectificationwarnings on a timely basis. Inefficientmanagement is reduced andineffectivemanagementiseliminated.Costadaptationisimplementedandtheconceptofcontrollingineffectivecostsisthoroughlyimplemented.

Digitisation empowered the entire operation process, effectively enabling refined management.On thebasisofprogressiveachievements,wewillcontinue to speedupdigitisation throughout theentirebusinessprocess,enablemanagementdata tobemadeavailableonlineanddigitisationof theentirebudget, thecostmanagementof theentirecycleofprojectdevelopmentandreal-timeintegrationofbusinessandfinance,andone-stopbiddingandpurchasingbusinessmanagementand services, etc.Theonline salescentrewas firstly launchedduring theEpidemic,generatingalmostRMB10billion inonlinesalesinthefirsthalfoftheyear.TheEpidemicmanagementfunctionwasrapidlylaunchedtoensurethesafetyof80,000workersbacktoworkandproduction.

“5M Smart Health Community” maintained leading advantage, improved capabilities in products and services.TheGrouplaunchedthefirstAIsmartcommunityinassociationwithAlibabaCloudComputingCo.,Ltd., and theSmartHomestandardwasupdatedand iterated toversion4.1 fromversion4.0 in2019.Asat30June2020,approximately40,000setsofSmartHomeweredelivered in total.Basedonsufficientcustomer research, theGroupcooperatedwith theArchitecturalDesignandResearchInstitute ofTsinghuaUniversity andAntaoDesignGroup to carry out innovativetechnological researchand launched theMideaHealthyHabitatPlanwitheighthealthscenarios to build new lifestyles for future communities.We have completed theintegrationofourcustomerrelationshipsystemwhichenhancedandimprovedourservicecapabilities.

The accelerated development of the “two secondary business lines” (兩翼) industry. The strategy of carrying out independent research and development togetherwithecological constructionwas adopted for intelligent industrialisation and buildingindustrialisation, and theAI smart system of residences in the communitywassuccessfullydeveloped.The full implementationofArtificial IntelligenceofThings(AIoT)andcompletecoverageof scenarios in smartdwellingswereachieved,and thesmart hardware and software ecosystemswere improved.The industry andproductresearchinstitutewasestablishedandtwofactoriesintheprefabricatedindustrywereputinto production to expedite the layout of the ecosystem of prefabricated interiordecoration.

–19–

BUSINESS OUTLOOK FOR THE SECOND HALF OF 2020

Market Outlook

In thesecondhalfof theyear,“housing isnot forspeculation” remains tobe themotto,andthere is limitedspace formarginal relaxation.The realestatework forumorganisedby thecentralgovernmentstressedonceagainthat“housingisnotforspeculation”,andseveralcitiesintroduced tighteningpolicieson regulationof the realestatemarket.Under the long-termmanagementmechanismof “implementationofpolicies according to the city”, the localpolicieson the realestatemarketaremorestable,and themarketwillcontinue tomaintainstableoperationalmomentum.

Industrialbusinessdevelopmentwillfaceupgrading,newspacewillneedtobefoundforcityconstructionsandrealestatedevelopment.Theshortageoflandsupplyincorecitieswillleadtoanupsurgeofurban renewals,driving the industry toaneraof intensivecultivationofstock.Thedifferentiationofcitypotentialwilldrivetheresourcesofrealestateenterprisestoflow towardsmainstreamcities.Theproductcapitalisationofhigh-qualityprojectscanberealisedtoobtainvalue-addedprofitsonlybyenteringthemainstreammarket.

Development Strategy and Outlook

Theyear of 2020 is a year of strategic consolidation of theGroup.Wewill firmly andthoroughly implement operationalmeasures, combinedwith the opportunity from theincreaseddemandsforresidentialqualityinthepost-Epidemicera,tostrengthenthesortingofour internalbusinessandmarket researchandassessment.Wewillpursuequalitygrowthasourtarget,guidedbyourcashflowandprofit,considercustomerstobeourfocus,usingourproductsandservicesas thebasis forcompetition,anddigitalisationasameans, toachieveimprovement of quality and efficiency and comprehensively upgrade andmaintain ourcompetitiveness.

Inthesecondhalfof2020,theGroupwillstudyandassessmarketchangesthoroughly,setitsinvestmentpacereasonably,comprehensivelyconsiderconductinglandacquisitionsbasedonthecombinationof industrycycle, citycycle, city inventoryand sustainabledevelopmentcapabilities,andstrengthenitseffortstoacquirelandsforurbanrenewalprojects,tocreatethecompetitivenessforcityexpansionthroughpenetration.

Comprehensively push forward digitalised operations to realise lean management. Digitalisationmethodswillcovertheentirepropertydevelopmentprocessandcomprehensiveonlinemonitoringwill beguidedby “profit” and “cash flow” to establish a closed-loopmanagementsystembasedonoperatingindicatorsforreserves,construction,supply,salesandinventory.

Build a security system and create system-wide precision quality.Throughimplementationof standardisedmanagementofprojects, strategiccentralisedprocurement fromsuppliers,intelligentisationand informatisationofmanagement tools, and six third-partyevaluationsystems,asteadyincreaseinourconstructionqualitytoproduceexceptionalproductscanbeachieved.

–20–

Focus on intelligence and health, and strengthen the core competitiveness of products. Push forwardproductupgrades through thedual-dimensionalempowermentof intelligenceandhealth.Wewillemphasiseon investments in smart researchanddevelopmentprojects,straighten outmanagementmechanismofM-Smart, put “trendy and popular products”forwardaccording tocustomers, lifestyleandexperience, focuson innovative technologies,reshape the “5M Smart Health Community”, and continuously strengthen the corecompetitivenessofourproducts.

Focus on service quality and realise the continuous offering of value to customers.Wewillcontinue topush forward theupgradingof the integrationofourcustomer relationshipsystem,payattention toourcustomer’s livingexperienceover the full lifecycle, createasmartandhealthylifestylethatcanbedelivered,returnandfocusoncommunityservicesandcontinuetoimprovecustomersatisfactiontorealisecontinuousofferingofvaluetocustomers.

MANAGEMENT DISCUSSION AND ANALYSIS

Overall Performance

During theReportingPeriod, theGroup recordeda revenueofRMB20,936.62million (thecorrespondingperiodof2019:RMB14,194.85million),representinganincreaseof47.5%ascompared to thecorrespondingperiodof2019.Operatingprofitamounted toRMB3,393.63million(thecorrespondingperiodof2019:RMB3,265.69million),representinganincreaseof3.9%as compared to the correspondingperiodof 2019.Profit for theReportingPeriodamountedtoRMB2,354.24million(thecorrespondingperiodof2019:RMB1,888.76million),representinganincreaseof24.6%ascomparedtothecorrespondingperiodof2019.Corenetprofi t for the Report ing Period increased by 24.7% to RMB2,356.97mill ion ( thecorrespondingperiodof2019:RMB1,889.37million).Profit attributable toownersof theCompany reachedRMB2,024.10million (thecorrespondingperiodof2019:RMB1,769.38million),representinganincreaseof14.4%ascomparedtothecorrespondingperiodof2019.Basicanddilutedearningsper share reachedRMB1.64 (thecorrespondingperiodof2019:RMB1.49).

Land Reserves

During theReportingPeriod, theGroup and its joint ventures and associates recordedcontracted sales of approximately RMB48.20 bill ion and contracted sales GFA ofapproximately4.379millionsquaremetres.Specifically, theYangtzeRiverDelta, thePearlRiverDelta and other regions accounted for 46.5%, 14.6% and 38.9%of theGroup’scontractedsales respectively, reflecting thestrongoperatingcapabilitiesof theGroupwhichfocuseson themost economicallyprosperousanddynamicareas inChina— theYangtzeRiverDeltaand thePearlRiverDelta,whilebuildingpresence in theMidstreamofYangtzeRiver,NorthChina andSouthwest regions,which have growth potential and sustainedpopulationinflow.

DuringtheReportingPeriod,theGroupstrategicallyreplenisheditslandreservesaccordingtomarketconditions.Wecontinued toexpand towards thecentralcitiesandkey tier-oneandtier-twocities.ThetotalGFAofthenewlyacquiredlandreserves*amountedto3.99millionsquaremetres,andnewly-developedmarketsincludedWenzhouandLuoyang.

* Propertiesheldbyour jointventures/associatesofwhich the totalGFAof the land reserveshasbeendiscountedinproportiontoownershippercentage.

–21–

Asat30June2020, theGrouphada totalof295propertydevelopmentprojectsand67oftheseprojectswereparticipatedthroughjointventuresandassociates,covering61citiesin18provincial-leveladministrativedivisionsacrossChina,andhadatotalGFAoflandreservesof54.31millionsquaremetres.

FINANCIAL REVIEW

Revenue

Property Development and Sales

DuringtheReportingPeriod,theGroup’srecognisedrevenuefrompropertydevelopmentandsales increasedby47.9% toRMB20,533.53million fromRMB13,884.15million in thecorrespondingperiodof2019,primarilyduetotheincreaseinthetotalGFArecognised.TotalGFArecognisedamountedto2.3683millionsquaremetres,representinganincreaseof52.8%from1.5500millionsquaremetresinthecorrespondingperiodof2019.

Property Management Services

DuringtheReportingPeriod,theGroup’srevenuederivedfrompropertymanagementservicesincreasedby61.5% toRMB346.45million fromRMB214.47million in thecorrespondingperiodof 2019, primarily due to an increase in theGFAof the property under contractmanagement.

Investment and Operation of Commercial Properties

During theReporting Period, theGroup’s revenue from investment and operation ofcommercialpropertiesdecreasedby41.1%toRMB56.64millionfromRMB96.23million inthecorrespondingperiodof2019.ThedecreasewasduetotheimpactoftheEpidemiconthecultural-tourismprojects.

Cost of Sales

TheGroup’scostof salesprimarily represents thecosts incurreddirectly from thepropertydevelopmentactivities, theprovisionofpropertymanagement servicesandotherbusinesses.DuringtheReportingPeriod,theGroup’scostofsalesincreasedby69.3%toRMB15,412.83millionfromRMB9,101.51millioninthecorrespondingperiodof2019,primarilyduetotheincreaseinrecognisedGFAof52.8%to2.3683millionsquaremetresfromthecorrespondingperiodof2019.

Gross Profit

During theReportingPeriod, theGroup’sgrossprofit increasedby8.5% toRMB5,523.79millionfromRMB5,093.34millioninthecorrespondingperiodof2019.Theincreaseingrossprofitwasprimarilydrivenbytheincreaseinsalesrevenue.

–22–

Other Income and Gains — Net

DuringtheReportingPeriod, theGroup’sother incomeandgains—net increasedby52.6%toRMB413.16million fromRMB270.81million in thecorrespondingperiodof2019.TheGroup’sother incomeandgainsprimarilyconsistsofmanagementandconsulting serviceincome, realisedandunrealisedgainson financialassetsat fairvalue throughprofitor loss,governmentsubsidyincome,compensationincome,etc.

Selling and Marketing Expenses

DuringtheReportingPeriod,theGroup’ssellingandmarketingexpensesincreasedby20.5%toRMB1,259.50million fromRMB1,045.47million in thecorrespondingperiodof2019,primarilyduetotheincreaseofmarketingandadvertisingtopromotesalesinresponsetothepoormarketconditionscausedbyEpidemic.

Administrative Expenses

During theReportingPeriod, theGroup’s administrativeexpenses increasedby22.5% toRMB1,262.96million fromRMB1,030.66million in the correspondingperiodof 2019,primarilyduetotheincreaseinstaffcostscausedbythecontinuingexpansionoftheGroup’spropertydevelopmentbusiness, and impairmentprovision for thosepropertydevelopmentprojectssubjecttoimpairmentrisks.

Finance Income — Net

TheGroup’snetfinanceincomeprimarilyconsistsof interestexpensesforbankloans,otherborrowings, issueddomesticcorporatebondsand lease liabilitynetof capitalised interestrelating topropertiesunder construction, interest income frombankdeposits, aswell asforeignexchangegainsand lossesarisingfromfinancingactivities.Thegeneralandspecificborrowing costs directly attributable to the acquisition, construction or production ofqualifyingassets(assetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintended use or sale) are capitalised into the cost of those assets, until such assets aresubstantiallyreadyfortheirintendeduseorsale.

During theReporting Period, theGroup’s net finance income recorded a net gain ofRMB119.51millionas comparedwithRMB82.07million in the correspondingperiodof2019,representinganincreaseof45.6%,primarilyduetoanincreaseininterestincomefromRMB92.69million in thecorrespondingperiodof2019 toRMB160.18millionduring theReportingPeriod.

Profit Attributable to Owners of the Company

DuringtheReportingPeriod,profitattributabletoownersoftheCompanyincreasedby14.4%toRMB2,024.10millionfromRMB1,769.38millioninthecorrespondingperiodof2019.

–23–

LIQUIDITY AND CAPITAL RESOURCES

Cash Position and Available Funds

TheGroup’stotalcashandbankdepositsreachedRMB25,996.45millionasat30June2020(31December2019:RMB26,935.62million), includingRMB19,913.19million incashandcashequivalents(31December2019:RMB19,097.27million),nilintermdepositswithinitialtermsofover threemonths (31December2019:RMB141.16million) andRMB6,083.26million in restricted cash (31December 2019:RMB7,697.19million).Several propertydevelopment companiesof theGroupare required todeposit certain amountsofpre-saleproceedsatdesignatedbankaccountsasguaranteedeposits for theconstructionof relatedproperties.As at 30 June 2020, theGroup’s unused credit facilities from bankswereRMB87,410.00million.

Borrowings and Gearing Ratio

Asat30June2020,theGroup’stotalborrowingsamountedtoRMB56,112.50million.Bankandotherborrowings,andcorporatebondswereRMB44,146.11millionandRMB11,966.39million, respectively.Asat30June2020, thegearing ratiowas86.8%(31December2019:89.0%).Thegearingratio iscalculatedbasedonnetborrowingsdividedby totalequity.Netborrowingswerecalculatedastotalamountofborrowingslesscashandcashequivalents,termdepositswithinitialtermsofoverthreemonthsandrestrictedcash.

Borrowing Cost

During the Reporting Period, the total borrowing costs of the Group amounted toRMB1,624.44million, representingadecreaseofRMB63.66million fromRMB1,688.10millionforthecorrespondingperiodof2019,mainlyduetothedecreaseofweightedaverageeffectiveinterestoftheGroup’stotalborrowingsduringtheReportingPeriodto5.52%from5.95%inthesameperiodoflastyear.

Contingent Liabilities and Guarantees

TheGroupprovidesmortgageguarantees tobanks in respectof themortgage loans theyprovidedtoourcustomersinordertosecuretherepaymentobligationsofsuchcustomers.Themortgageguaranteeswere issued from thedateofgrantof the relevantmortgage loans,andreleasedupon theearlierof (i) issuanceof the real estateownershipcertificatewhicharegenerallyavailablewithin threemonthsafter thepurchasers takepossessionof the relevantproperties;and (ii) thesatisfactionofmortgaged loansby thepurchasersof theproperties.Pursuant to the terms of the guarantees, upon default inmortgage payments by thesepurchasers,weare responsible to repay theoutstandingmortgageprincipals togetherwithaccruedinterestandpenaltyowedbythedefaultedpurchaserstothebanksandweareentitledtoretainthelegaltitleandtakeoverthepossessionoftherelatedproperties.Ifwefail todoso,themortgageebankswillauctiontheunderlyingpropertyandrecoverthebalancefromusiftheoutstandingloanamountexceedsthenetforeclosuresaleproceeds.Inlinewithindustrypractice,wedonotconductindependentcreditchecksonourcustomersbutrelyonthecreditchecks conductedby themortgageebanks.Asat30 June2020, thevalueof theGroup’sguaranteeinrespectofmortgagefacilitiesforcertainpurchasersamountedtoRMB70,465.42million(31December2019:RMB62,687.03million).

–24–

Inaddition, theGroupalsoprovidesguarantees forborrowingsof several jointventuresandassociates.As at30 June2020, thevalueof theGroup’sguarantee for the loansof jointventuresandassociatesamountedtoRMB9,547.39million(31December2019:RMB6,991.18million).

Interest Rate Risk

TheGroup’s interest rate riskarises from interest-bearingbankdeposits, corporatebonds,bankandotherborrowings.Bankdeposits,bankandotherborrowingsissuedatvariableratesexposetheGrouptocashflowinterestraterisk.Corporatebonds,bankandotherborrowingsissuedatfixedratesexposetheGrouptofairvalueinterestraterisk.

Currency Risk

TheGroup’sbusinessesaremainlyconductedinRMBandmostofitsassetsaredenominatedin RMB.Non-RMB assets and liabilit ies aremainly bank deposits and borrowingsdenominated inHongKongdollarsandUSdollars.TheGroup is subject tocertain foreignexchange risks arising from future commercial transactions and recognised assets andliabilitieswhicharedenominatedinHongKongdollarsandUSdollars.

Legal Contingencies

TheGroupmaybeinvolvedinlitigationsandotherlegalproceedingsinitsordinarycourseofbusiness from time to time.TheGroupbelieves that the liabilitiesarising from these legalproceedingswillnothaveamaterialadverseeffectonourbusiness, financialconditionorresultsofoperations.

SIGNIFICANT INVESTMENTS HELD, MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES, AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS

DuringtheReportingPeriod,therewerenoothersignificantinvestmentsheld,andnomaterialacquisitionsordisposalsofsubsidiaries,associatesandjointventures,norwasthereanyplanauthorisedbytheBoardforothermaterialinvestmentsoradditionsofcapitalassets.

CHANGES SINCE 31 DECEMBER 2019

Save as disclosed in this announcement, therewere noother significant changes in theGroup’s financial position or from the information disclosed under the section headed“ManagementDiscussionandAnalysis” in theGroup’sannual report for theyearended31December2019.

–25–

SUBSEQUENT EVENTS

On14 July2020,MideaRealEstateGrouppublicly issued the third trancheofdomesticcorporatebonds inanaggregate sumofRMB1billion toqualified investors inChinawithacoupon rateof4.10%perannumfora termof4yearsor4.18%perannumfora termof5years,whichwillmatureinJuly2024andJuly2025respectively(the“2020 Public Issuance of Domestic Corporate Bonds (Third Tranche)”).MideaRealEstateGrouphasanoptiontoadjustthecouponrateattheendof(inthecaseofthe4-yearcorporatebonds)thesecondyearor(inthecaseofthe5-yearcorporatebonds)thethirdyear,andinvestorsareentitledtosellback.Forfurtherdetailsaboutthe2020PublicIssuanceofDomesticCorporateBonds(ThirdTranche),pleaserefertotheCompany’sannouncementsdated9July2020and13July2020.

On3August2020,MideaConstruction (HongKong)Limited,an indirectlywholly-ownedsubsidiaryoftheCompany(asborrower),theCompany(aslistingguarantor)andcertainofitssubsidiaries incorporatedoutside thePRC (asoriginalguarantors) entered into a facilityagreementwithcertainfinancialinstitutions(aslenders)foradualtranchetransferrabletermloan facilitydenominated inHKDandUSDinan initialamountofHKD1,050millionandUSD60millionrespectively,whichmaybesubsequentlyincreaseduptoHKD1,170millionoritsUSdollarsequivalent (exclusiveof the said initial amount) (the“Loan(s)”).The finalrepaymentdateof theLoan(s) shallbe thedate falling36monthsafter the firstwithdrawaldate.

USE OF PROCEEDS FROM INITIAL PUBLIC OFFERING

TradingofsharesintheCompanyontheMainBoardofTheStockExchangeofHongKongLimited commenced on 11October 2018, and the Company raised net proceeds ofapproximatelyRMB2,786.87million (including theexerciseof theover-allotmentoption),afterdeductingtheunderwritingcommissionandotherexpensesinconnectionwiththeinitialpublicoffering(“IPO”).

–26–

Asat 30 June2020, an analysisof theutilisationof IPOproceedsof theCompany is asfollows:

Originalallocation of

IPO proceeds(including theexercise of theover-allotment

option)

Utilised IPOproceeds as at30 June 2020

Unutilised IPOproceeds as at30 June 2020

Expectedtimeline for

the use ofunutilised IPO

proceeds RMB million RMB million RMB million

Landacquisitionormergersand acquisitionstoincreaselandreserves

1,950.81 749.09 1,201.72(Note1)

Onorbefore31December

2020Landacquisitionandconstructionfor prefabricatedconstructionprojects

418.03 418.03 – –

Researchanddevelopmentof SmartHomesolutions

139.34 139.34 – –

Generalworkingcapital 278.69 278.69 – –

Total 2,786.87 1,585.15 1,201.72

Note:

1. TheoutbreakofthenovelcoronavirushasaffectedthebusinessandeconomicactivitiesoftheGroupinthefirsthalfof2020tosomeextent.TheCompanypredictsthattherealestatemarketofcorecitiesisexpectedtoreboundinthesecondhalfof2020andhasbeenconstantlyevaluatingtargetsandpotentialopportunitiesforexpandingits landreserves throughthepublic landauctionmarket inChangzhou (常州),Wuxi(無鍚) andJiujiang (九江), thePRCwithpotential investments inanestimatedaggregatesumofRMB1,534.42milliontobefundedbytheunutilisedIPOproceedsandotherfundingresourcesof theGroupin the thirdquarterof2020.ItisalsoexpectedthatanestimatedaggregatesumofRMB488.22millionwillbeusedfordevelopmentinYangzhou(揚州)andXuzhou(徐州),thePRCinthefourthquarterof2020.However,theimplementationoftheseprojectsmayvaryduetothehighcompetitionintheauctionorthedemandonthelocalrealestatemarket.

TheCompanyintendstoapplytheremainingproceedsinthemannersetoutintheCompany’sprospectusdated28September2018.Nonetheless, theBoardwill constantlyevaluate theGroup’sbusinessobjectivesandmaychangeormodify theplansagainstchangingmarketconditionsasnecessaryandwillmakethenecessaryannouncement(s)incompliancewiththerequirementsoftheRulesGoverningtheListingofSecuritiesonTheStockExchangeofHongKongLimited(the“Listing Rules”)whereappropriate.

–27–

HUMAN RESOURCES

Asat30June2020,theGrouphademployedapproximately14,200fulltimeemployees,mostofwhomwerebased in thePRC.Employee’s remuneration includes salaries,bonusesandothercashsubsidies.TheremunerationandbonusesoftheemployeesaredeterminedbasedontheGroup’s remuneration andwelfare policies, the performance of the employees, theprofitabilityof theGroupandmarket level.TheGroupwill alsoprovideemployeeswithcomprehensivewelfare plans and career development opportunities, including socialinsurances,housingprovident funds,commercial insuranceaswellas internalandexternaltrainingopportunities.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

Neither theCompanynoranyof itssubsidiarieshadpurchased,soldor redeemedanyof thelistedsecuritiesoftheCompanyduringthesixmonthsended30June2020.

COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF LISTED ISSUERS

TheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers (the“Model Code”)as setout inAppendix10 to theListingRulesas thecodeofconductof theCompanyforDirectors’securities transactions.Havingmadespecificenquiryof theDirectors,all theDirectorsconfirmed that theyhavecompliedwith theModelCodeduringthesixmonthsended30June2020.

COMPLIANCE WITH CORPORATE GOVERNANCE CODE

Save asdisclosedbelow, theCompanyhad compliedwith all the codeprovisionsof theCorporateGovernanceCode(the“CG Code”)assetoutinAppendix14totheListingRulesduringthesixmonthsended30June2020.

OurChairman is responsible for formulating the overall strategies and policies of theCompanyandprovidingleadershipfortheBoardinfulfillingitsrolesandresponsibilitiesandtheestablishmentof soundcorporategovernancepracticesandprocedures for theCompany.OurChairman,aschiefexecutiveoftheCompany,isalsodelegatedtheauthoritybytheBoardto lead theday-to-dayoperationandbusinessmanagementof theGroup inaccordancewiththeobjectives,directionsandpolicieslaiddownbytheBoard.

According to codeprovisionA.2.1of theCGCode, the rolesof chairman and the chiefexecutiveofficer shouldbe separateandshouldnotbeperformedby the same individual.During the sixmonths ended30 June2020,Mr.HaoHengleperformedhisduties as thechairman andpresident of theCompany.As such, theCompanyhasdeviated fromcodeprovisionA.2.1oftheCGCode.GivenMr.HaohasconsiderableexperienceinthePRCrealestate industry and the business operations of theGroup, and is familiarwithMidea’soperations andmanagement core values, theBoard believes that vesting both roles ofchairmanandpresidentinMr.HaofacilitatestheexecutionoftheGroup’slong-termstrategicaims and achieving its operations and business objectives, therebymaximising theeffectivenessoftheGroup’soperations.

–28–

TheBoardbelieves that this structure is in thebest interestof theCompany,and that thissituationwill not impair thebalanceof power and authority between theBoard and themanagementoftheCompanybecausetheBoardcomprisesnineexperiencedandhigh-calibreindividualswith demonstrated integrity, ofwhich three are independent non-executiveDirectors.Further,decisionsof theBoardarecollectivelymadebywayofmajorityvoting.TheBoardwillneverthelessreviewtheeffectivenessofthisstructurefromtimetotime.

REVIEW OF THE INTERIM RESULTS BY AUDIT COMMITTEE

TheCompanyestablished itsauditcommittee (“Audit Committee”)on12September2018withtheresponsibilitytoassisttheBoardinprovidinganindependentreviewofthefinancialstatements, riskmanagementand internalcontrol systems.TheAuditCommitteecomprisestwoindependentnon-executiveDirectors,Mr.TanJinsong(chairmanoftheAuditCommittee)andMr.O’YangWiley,andonenon-executiveDirector,Mr.ZhaoJun.Mr.TanJinsongistheindependentnon-executiveDirectorpossessing theappropriateprofessionalaccountingandrelatedfinancialmanagementexpertise.

TheAuditCommitteehas reviewed theunaudited interim resultsof theGroup for the sixmonthsended30June2020,includingtheaccountingprinciplesandpracticesadoptedbytheGroup. In addition, PricewaterhouseCoopers, theCompany’s auditor, has reviewed theunaudited interimfinancial informationof theGroupfor thesixmonthsended30June2020inaccordancewithHongKongStandardonReviewEngagements2410“Reviewof InterimFinancial InformationPerformedby the IndependentAuditorof theEntity” issuedbyHongKongInstituteofCertifiedPublicAccountants.

INTERIM DIVIDEND

TheBoardhas resolvednot todeclarean interimdividendfor thesixmonthsended30June2020(forthecorrespondingperiodof2019:Nil).

PUBLICATION OF THE RESULTS ANNOUNCEMENT AND INTERIM REPORT

ThisresultsannouncementispublishedontheCompany’swebsiteathttp://www.mideadc.comand thewebsiteofHongKongExchangesandClearingLimitedathttp://www.hkexnews.hk.The2020interimreportwillbedespatchedtotheshareholdersoftheCompanyandavailableontheaforesaidwebsitesinduecourse.

ByorderoftheBoardMidea Real Estate Holding Limited

Hao HengleChairman,ExecutiveDirectorandPresident

HongKong,20August2020

Asat thedateof thisannouncement, theexecutiveDirectorsof theCompanyareMr.HaoHengle,Mr.YaoWei,Mr.LinGeandMs.LinDongna; thenon-executiveDirectorsof theCompanyareMr.HeJianfengandMr.ZhaoJun;andtheindependentnon-executiveDirectorsoftheCompanyareMr.TanJinsong,Mr.O’YangWileyandMr.LuQi.