Evergrande's Many Core Indicators Lead in China According to 2012 Interim Report
BEIJING, Aug. 28, 2012 /PRNewswire-Asia/ -- On August 28, Evergrande released their sales performance report of the first half year of 2012 in Hong Kong. By virtue of the forward-looking development strategy and the product positioning conforming to the rigid-demand market, the Company still keeps steady development with many key indicators ranking No.1 in China, leading in the Chinese real estate market. An original report by Sina Leju follows:
According to the Interim Report, in the first half year of 2012, Evergrande achieved the total assets of 198.08 billion yuan (RMB, the same below), with an increase of 34% on a year-on-year basis; it also ranked No.1 among the Chinese real estate enterprises in terms of business turnover, area under construction, as-built area and other indicators. It achieved the business turnover of 37.04 billion yuan, with an increase of 15.5% on a year-on-year basis, the area under construction of 34.853 million square meters, with an increase of 10.2% on a year-on-year basis, and the as-built area of 9.142 million square meters, with an increase of 36.2% on a year-on-year basis. In addition, in the first half year, Evergrande achieved the sales area of 5.768 million square meters, ranking No.1 among the Mainland real estate enterprises in Hong Kong, and achieved the net profit of 5.62 billion yuan, 1.5 times that of Vanke in the corresponding period.
According to the market analysts, the key factor for Evergrande achieving anti-trend growth under strict macro-control is their product development mode conforming to the market and policy directions. According to the data, in Evergrande's product system, the medium-to-high-end products account for 70%, the tourism real estate products account for 15%, and the high-end products account for 15%, consistent with the rigid demand relating to property. In addition, after cost reduction through intensified management and standardized operation, Evergrande has greater price adjustment space in market fluctuation, so that the Company can achieve the considerable profit space.
Under the current situation of real estate market macro-control and fierce real estate enterprise competition, to launch high cost-effective products in the second- and third-tier cities of vigorous rigid demand has become the foundation of main sales performance of real estate enterprises. According to the Interim Report, Evergrande has entered into 121 cities throughout the country, and has had 218 projects, with the sales contribution of the second- and third-tier cities being 98.8% in the first half year of 2012.
In addition, according to the Interim Report, Evergrande still keeps steady financial situation. The Company has the cash balance of 24.74 billion yuan, and inclusive of the unused bank credit line of 36.12 billion yuan, the total available capital is 60.86 billion yuan. By virtue of the continuous cash flow and the reasonable debt structure, since March, Evergrande has started to stimulate the sales throughout the country and has been maintaining the rapid growth situation, therefore it is expected to overfulfil the full-year sales target of 80 billion yuan once again.
SOURCE Sina Leju