Evergrande Achieves Operating Revenue With an Increase of 7 Times and Core Profit With an Increase of 18 Times in 2010

According to the annual report, Evergrande has become a real estate enterprise with the strongest increase capacity in China

Mar 29, 2011, 06:14 ET from Sina Leju

BEIJING, March 29, 2011 /PRNewswire-Asia/ -- On March 29, Evergrande (3333.HK), the leading enterprise in the real estate industry of China, released the 2010 Performance Report in Hong Kong, with amazing core data. According to the annual report, the operating revenue of Evergrande in 2010 was 45.8 billion yuan (RMB, the same below), with an increase of 700.7% compared to that in the same period of 2009, which was 5.72 billion yuan; the net profit had an increase of 616.1% from 1.12 billion yuan in 2009 to 8.02 billion yuan; the core business profit with the fair return of investment properties and the financial guarantee return deducted was 5.51 billion yuan, with an increase of 18 times compared to that in the same period of 2009, which was 1.12 billion yuan. An original report by Sina Leju follows:

While obtaining the performance growth to a large extent, Evergrande continues maintaining the steady growth of cash flow. The cash balance of the Group increased from 14.38 billion yuan at the end of 2009 to 19.95 billion yuan, and plus the unused bank credit line of RMB 32.25 billion yuan, the accumulative available capital of the Group was 53.20 billion yuan. In addition, the earnings per share of Evergrande in 2010 was 0.506 yuan, with an increase of 583.8% compared to that in the same period of 2009, which was 0.074 yuan; the proposed final dividend per share was 0.1268 yuan, with an increase of 17.1 times compared that in the same period of 2009, which was 0.007 yuan.

At the news conference, Hui Ka Yan, Chairman of the Board of Directors of Evergrande Group, said, "The advanced layout of the Group in the second- and third-tier cities has further strengthened our capacity to resist the market risk, providing the foundation for the rapid and steady development of the next stage." It is learned that Evergrande developed in the second- and third-tier cities of China as early as 2004, which is the real estate enterprise with the earliest layout in the second- and third-tier cities, and developed in the third-tier cities on a large scale in March 2010. At present, Evergrande has developed in 62 cities of China, among which, 39 cities are free of the purchase restriction policy, accounting for 63%; in the second-tier cities with purchase restriction policy, most of the projects are located at the non-hotspot areas, influenced by the policy to a very small extent, such as Changchun, Shenyang, Guiyang and Chengdu; among the current 112 projects of the Group, about 52% of them are not located at the areas with purchase restriction policy or are not influenced by the purchase restriction policy. Thanks to the reasonable nationwide layout, Evergrande has avoided the risk brought by the market turmoil of the first-tier cities since the macro-control in 2010. In addition, the products aim at the needs of the local first house purchasers, conforming to the increased market supply by the central government, supporting the macro-control original intention of owner-occupied demand.

In particular, we can conclude from the real estate enterprises in the previously released annual reports that "the second- and third-tier cities", "rapid turnover" and "catering to rigid demand" have become the one and only way for enterprises to maintain the rapid growth. The prospective layout of Evergrande in terms of "properties for the people's livelihood" and "rapid development and rapid marketing" has laid the foundation for the healthy and rapid development of the Company.

Based on the excellent performance of the Group in 2010, Hui Ka Yan is full of confidence in achieving the sales target of 70 billion yuan in 2011. Hui said, by virtue of the prospective strategy and the stable foundation of the nationwide layout, the rich industrial experience, and the strong brand and capital strength, the Group will certainly achieve the new leap-forward of each index, and continue maintaining the leading position in the boutique real estate of standardized operation in China.

SOURCE Sina Leju