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Evergrande Made Greater Achievement for People's Livelihood in the First Half Year

 Date:2013.08.26   Publisher:Evergrande Group

On August 26, 2013, Evergrande released the semi-annual report in Hong Kong. According to the report, by June 30, 2013, Evergrande gained brilliant sales performance in the adverse market in the first half year, ranking No. 1 in terms of total assets, business turnover, sales area, under-construction area, as-built area, number of projects developing in cities and cash balance. 
        Evergrande achieved the total assets of 274.59 billion yuan (RMB, the same below), with a sharp increase of 38.6%, becoming the champion again among the Mainland real estate enterprises in Hong Kong; it achieved the business turnover of 41.95 billion yuan, ranking No.1 again throughout the country; it achieved the net profit of 6.51 billion yuan, becoming the real estate enterprise with the smallest profits but the quickest returns in China; it had the cash balance of 41.97 billion yuan, ranking No. 1 throughout the country; it had the available cash of more than 80 billion yuan. 
        According to the insiders, under the market situation where the national macro-control is continued and the rigid demand has become the general trend, the high-turnover real estate enterprises represented by Evergrande have been showing the development trend that the strong get stronger. Evergrande's impressive sales performance not only becomes another success of its strategy for people's livelihood with clear orientation, but also demonstrates its super-strong market control ability and anti-risk capability. 

Focusing on the Layout and Upgrading the Strategy for People's Livelihood 
        In the first half year, Evergrnade achieved the net profit of 6.51 billion yuan, ranking No.2 throughout the country, creating the high profit with the lowest profit rate, consolidating the leading position of "the smallest profits but the quickest returns" among the real estate enterprises in China. Behind the meagre profit, powerful scale is definitely needed to ensure the orderly circulation of each link in the high-turnover process. Evergrande ranked No.1 among the Mainland real estate enterprises in Hong Kong in terms of total assets. According to the data, by June 30, 2013, Evergrande achieved the total assets of 274.59 billion yuan, with a sharp increase of 38.6% on a year-over-year basis. 
        In respect to the layout, Evergrande had 262 projects in 140 cities in the first half year. Recently, Evergrande intensively developed in the first-tier cities and other important core cities. Following the successful bidding of Changping Shahe Plot in Beijing for the first time in July, it acquired the plot in Beijing Dougezhuang and the excellent plot in Hangzhou Xiaoshan District again in September, with the urban layout ranking No.1 throughout the country. Evergrande has been always adhering to the strategy of layout in the second- and third-tier cities where the rigid demand market is oriented. In the first half year, the Company continued to optimize the land reserve regional layout, focusing on the existing supplementary high-quality urban projects to realize the equilibrium of land reserves. 
        According to the data, Evergrande had 34 new land reserves in the first half year, where the number of projects located in the first- and second-tier cities increased by 10.6%, and the third-tier projects were mostly located in the urban centre zones, which can meet the rigid demand and guarantee the continuing profitability of the Company. 
        In addition, the huge number of project development area has ensured the sufficient supply of the Company at all times. In the first half year, Evergrande continued to deepen the large-scale development mode, with the under-construction area of 37.671 million sqm and the as-built area of 9.708 million sqm, both ranking No.1 in the industry for many consecutive years, where the as-built area was twice that of the second place, far ahead in the industry. 
        In order to enable the purchasers with rigid demand to obtain higher-quality products, Evergrande has been promoting the updating and upgrading of residential products by means of scale external expansion and internal strength, and has establish an institute with Tsinghua University to be dedicated to the green residential buildings. 
        According to the insiders, whether introducing the new standard for residences or concluding the ten-year strategic cooperation with Tsinghua University, the initiatives of Evergrande have the benchmark significance in the industry, and will further consolidate its leading position in the Chinese residential product industry. 
        Cash-rich and Steady to Rush towards the Target of 100 Billion Yuan
        In the face of the deep macro-control of "post-five-rules era", the domestic real estate enterprises have to keep steady financial situation either for scale external expansion or for internal strength. The financing contingency ability and the steady & stable financial structure of Evergrande have been always the important reasons for its rapid development and for enjoying popularity among investors. 
        By June 30, 2013, Evergrande had the cash balance of 41.97 billion yuan at the highest level since its listing, with a sharp increase of 69.6% on a year-over-year basis, ranking No. 1 in the industry. Plus the unused bank credit line, Evergrande had the available cash of 81.45 billion yuan, with abundant capital position. 
        In respect to the debt ratio, Evergrande achieved the decrease in the net debt ratio by 37.7% compared to that in the same period last year, with the greatest decrease in the debt ratio in the entire industry. In addition, Evergrande has reasonable repayment term of land funds to be paid and sound debt structure at present. 
        According to the investment experts, it is really difficult for the large-scale real estate enterprises like Evergrande to keep rapid development while keeping sufficient cash flow, reasonable liabilities level and sound debt structure, fully displaying the development robustness and strategic scientificity. 
        In the next half year, Evergrande plans to launch 40 new projects, more than twice in the first half year. By virtue of the high-quality sufficient supply, plus the high-cost-effectiveness products, the marketing strategy of small profits but quick returns as well as the abundant and sound financial situation, it is extremely optimistic for Evergrande to achieve the sales target of 100 billion yuan.

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