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Remarkable First-half Business Performance Chairman Hui Declared Diversified Development in Hong Kong

 Date:2014.08.27   Publisher:Evergrande Group

The 2014 semiyearly report of Evergrande Group was issued in Hong Kong on Aug. 26. Chairman Hui announced to the world that Evergrande would unswervingly maintain its diversified development at the semiyearly business performance press conference held in Hong Kong.

According to the semiyearly performance report issued on the day, the first-half turnover of Evergrande Group reached 63.34 billion yuan, ranking No.1 in China with the year-on-year growth of 51%. Till the end of June in 2014, the total assets of Evergrande had increased to 421.65 billion yuan with a year-on-year growth of 53.6%. Evergrande Group also ranked No.1 in real estate developers in Hong Kong by the sales of 69.32 billion yuan with a year-on-year growth of 55.4% and net profit of 9.49 billion yuan with the year-on-year growth of 45.8%.

Evergrande Unswervingly Maintains Diversified Development

It was the first time that Chairman Hui declared the unswerving insistence in diversified development after a long-term and deliberate research. He officially announced the diversified development strategy of Evergrande Group at the semiyearly conference held on Aug. 2. After previous three strategic phases, Evergrande finally enters into the next phase of “Diversification+ scale expansion+ branding” and will implement its 7st “3-year plan” oriented at foundation consolidation and diversified development next year.

Why does Evergrande Group adopt the strategy of diversified development? Chairman Hui gave the answer to the question that after a specialized research, they found that most of the global top 500 enterprises would adopt the strategy of diversified development after they reached a certain scale, so would Evergrande Group, otherwise, Evergrande would lose many development opportunities for its scale, team and branding development. As for the new industries Evergrande plans to step into and when it will take the step, Chairman Hui said it all depended in the opportunities they seized in the market, it might be modern agriculture, dairy or livestock farming, maybe Evergrande Agri-industries foodstuffs, Evergrande infant formula and other new products would soon launch the market, we would announced to the public when it was confirmed.

At the same time, it was also the first time for Chairman Hui to announce that Evergrande was striving to be one of the global top 500 enterprises in the next year. “Evergrande is confident in main indexes in the evaluation of global top 500 enterprises, such as turnover” he said.

Evergrande Ranked National No.1 in Several Core Indexes

According to the semiyearly performance report issued on the day, the first-half turnover of Evergrande Group reached 63.34 billion yuan, ranking No.1 in China with the year-on-year growth of 51%. Till the end of June in 2014, the total assets of Evergrande had increased to 421.65 billion yuan with a year-on-year growth of 53.6%. Evergrande Group also ranked No.1 in real estate developers in Hong Kong by net profit of 9.49 billion yuan with the year-on-year growth of 45.8%.

It was stated in the semiyearly report that the business of Evergrande had extended to 147 cities with 303 projects, making Evergrande the enterprise with the most widespread project distribution in China and significant advantages in scale. Attributing to its large-scale operation and market-oriented marketing strategy, the first-half sales of Evergrande reached 69.32 billion yuan with a year-on-year growth of 55.4%, the rate of annual target completion reached 63%, ranking No.1 in China and the sales area amounted to 979.6 m2 with the year-on-year growth of 47.4%, topping the list in China.

Driven by remarkable business performance, till June 30, 2014, the cash reserve of Evergrande Group increased to 64.03 billion yuan with the year-on-year growth of 52.6%, ranking first in the industry. The sufficient cash flow of Evergrande Group could be seen from its 175.26 billion yuan worth of accumulated land cost, covering over 80% of the total land cost.

According to the analysis of insiders, it was the foresighted business distribution throughout the country, together with the well-positioned and rigid demand-satisfied products, that allowed Evergrande to achieve substantial improvement in business performance, the solid foundation of the group would lay a foundation for its diversified development.

Investment Banks Keep Optimistic about Evergrande

Global large-scale investment banks and research institutions keep optimistic about the further development of Evergrande Group based on Evergrande’s excellent performances in business performance, regional distribution and finance.

It was indicated in the research report of Goldman Sachs that the average first-half rate of annual target completion for Chinese real estate developers in 2014 was 40% while Evergrnade Group stood out with the completion rate of 63%. It was predicted in the research report of Furui Group that Evergrande would continue its development in the next half year, the grading of Evergrande as “Buy” was also restated in the report.

It was predicted by the board of Evergrande that the credit policy in the next half 2014 would increase demands for owner-occupied residences and the corresponding adjustments in marketing strategy of real estate developers would further stimulate the demands. In the next half year, there will be about 40 new marketable development projects located in Beijing, Shanghai, Guangdong, Chongqing and Jinan, etc., and the selective and specialized promotions of new projects would be arranged based on proper market timing and the overall demand. The board of Evergrande believed that the annual contracted sales target of 110 billion yuan would be achieved by Evergrande successfully.

The picture of 2014 semiyearly business performance press conference of Evergrande Group held in Hong Kong, 

HuiKa Yan(in-between), the Chairman of the board, Xia Haijun(right), the Vice-chairman and President of Evergrande, Xie Huihua(left), the CFO and Executive Director of Evergrande.

The picture of Chaiman Hui answering questions of journalists in Hong Kong

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