Country Garden’s H1/22 results were in line with our expectations. Contracted sales plunged 40% y-o-y, in line with the industry average of 30-40%. Positively, the company managed to maintain the cash collection rate at above 90%, and the leverage metrics remained broadly stable. That said, the H1/22 gross margin came under pressure at 11% (lower than most peers). Additionally, the average sell-through rate stood at only 50%, which could result in cash being trapped in developments with low demand.