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[Xinhua Finance] Evergrande Realized Interim Net Profits of 13.3 Billion Yuan with 40% Increase and Total Assets of 539.9 Billion Yuan

 Date:2015.08.31   Publisher:Xinhua Finance (Homepage)

On August 31, Evergrande Real Estate (HK.3333), a target stock of Shanghai-Hong Kong Stock Connect, released its results for the first half of the year. It realized net profits of 13.29 billion yuan, and profits from key business of 10.16 billion yuan, representing a year-on-year increase of 40% and 56.5% respectively, with a cash balance of 81.57 billion yuan and total assets of 539.85 billion yuan in the first half of the year.

The breakthrough in the profit indicator has become the greatest highlight of Evergrande’s performance in this period. The data shows that Evergrande’s net profits increased by 40% to 13.29 billion yuan on a year-on-year basis, and the profits from key business increased by 56.5% to 10.16 billion yuan on a year-on-year basis, both of which were equal to the full-year level in 2013. Meanwhile, the key business profit margin increased by 2.8 percents to 13.1% on a year-on-year basis, with a growth rate of nearly 30%. The increase in profitability has brought good returns for investors. Evergrande’s earnings per share in this period were 0.63 yuan, representing a year-on-year increase of 31.3%, with a shareholder return of 34.5%.

The interim report shows an increase in both the trading volume and prices of Evergrande in the first half of the year. The contractual sales amount was 87.11 billion yuan, accounting for 58.1% of the full-year target, with a year-on-year increase of 25.7%; the contractual area sold was 11,378,000 square meters, with a year-on-year increase of 16.1%; the contractual average selling price was 7656 yuan/square meter, with a year-on-year increase of 8.2%. Meanwhile, Evergrande’s half-year operating revenue reached 77.74 billion yuan, representing a year-on-year increase of 22.7%.

In the financial aspects, Evergrande had abundant cash flows, with cash in hand of 81.57 billion yuan, which hit a record high in the history of the company. It also had unused banking facilities of 134.2 billion yuan, and available funds of 215.77 billion yuan. By the end of the report period, Evergrande had pre-maturity outstanding land payments of 33.57 billion yuan, accounting for only 13.5% of the total land payments.

With respect to development and construction, Evergrande continued to show its high turnover style. By the end of the first half of the year, Evergrande had land reserves of 144 million square meters, 291 projects under construction, area under construction of 41,700,000 square meters, and completed area of 12,870,000 square meters.There were 35 newly added projects in the first half of the year, including 22 first and second-tier projects.

The data shows that Evergrande has maintained remarkable performance since its listing in 2009.Compared to 2009, Evergrande’s contractual sales in 2014 increased by more than 3 times from 30.3 billion yuan to 131.5 billion yuan; the key net profits of 12.04 billion yuan are 40 times of 290 million yuan; net profits increased by 16 times to 18.02 billion yuan; cash balance increased from 14.38 billion yuan to 59.5 billion yuan.

“Evergrande has maintained an average annual growth rate of more than 30% in recent years. This is mainly attributable to its ‘Cash is King’ strategy, strict plan management, and stable profit level under the overall situation of market adjustment.” Said an insider.

By the closing time on that day, Evergrande’s share price had increased by 3.24% to 5.1 HKD, with a trading volume of 53,170,000 shares, and a trading amount of 261 million HKD.


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