Evergrande Sold Over 10 Billion Yuan in June; Price and Volume Rising for 4 Consecutive Months

Jul 08, 2013, 12:36 ET from Sina Leju

BEIJING, July 8, 2013 /PRNewswire/ -- On July 8, Evergrande issued a short report on its performance in June. According to the report, Evergrande achieved remarkable performance in the real estate sector: The total sales volume was 10.42 billion yuan (in RMB, the same below), a year-on-year growth of 26.7% and a month-on-month growth of 13.1%, both ranked first of all domestic real estate enterprises in China; the total area, 1,425,000 m2, was the largest of all peer enterprises in China, a year-on-year growth of 4.5% and a month-on-month growth of 10.8%, again both ranked first of all its peers. Evergrande has seen a double-digit growth of four month since March, in spite of the grim market environment. An original report from Sina Leju follows.

In the first half of this year, the Group realized a total sales volume of 44.61 billion yuan, a year-on-year growth of 27.3%, accounting for 44.6% of the annual goal of 100 billion yuan, which was higher than the same period of last year by 0.8 percentage points. The accumulative area sold is 6,647,000 m2, a year-on-year growth of 15.2%.

Both price and sales volume have risen, with the average price per meter exceeding 7,000 yuan again

With the five-article policy of the State Council implemented and the market adjusted accordingly, the market has been dominated by rigid demands and the market turnover has begun to rise at a significant rate. According to latest monitoring statistics released by China Index Research Institute, the number of enterprises with a sales volume exceeding 30 billion yuan has been increased from six in the same period last year to nine. The market share of leading enterprises in this industry has increased. According market analysts, Evergrande's double-digit growth of the total sales volume and area sold in the recent four consecutive months were largely due to its quality products, its market-oriented sales strategy and its prudently calculated quantities launched at a accurately designed sales pace.

While maintaining the double-digit growth in terms of the sales volume and area sold, Evergrande has also promoted its average price to over 7,000 in June and achieve continuous rises in terms of both quantity and price since March. According to the report, the average sales price of Evergrnde's products in June was 7,310 yuan/m2, a year-on-year growth of 2.1%, and the average sales price of the first half of 2013 was 6712 yuan/m2, a year-on-year growth of 10.5%.

Robust financial strength guarantees the realization of the sales goals of 100 billion yuan

With the continuous implementation of the national real estate control policy and the tightening monetary market, the capital-intensive real estate industry has been faced with huge challenges and the financing capacity of the enterprises has decisive impacts on their survival and growth.

It is reported that Evergrande has recently established an in-depth strategic cooperation agreement with China Postal Savings Bank and other financial giants and has won a one-lump credit line of 5 billion yuan, which enhanced its financial capacity to sustain its future development. The cash balance of the Group was reported to be 40.56 billion yuan as of June 30, 2013. So far, Evergrande has won a total banking credit line of over 60 billion yuan, resulting in a total of over 100 billion yuan available for investment.

It is further reported that since May, 2013, Evergrande has forced its way into Beijing, Guangzhou and other Tie-1 cities while maintaining its investment efforts in Chongqing, Dalian and other Tie-2 and Tie-3 cities, further increasing its market share.

SOURCE Sina Leju