Evergrande's Chairman Hui Ka Yan on Fact-finding Trip in Northeast for Market Expansion Despite the Depression

BEIJING, Oct. 31, 2011 /PRNewswire-Asia/ -- Despite the downturn of the overall real estate market, Evergrande Group, which has already reached its sales target for the whole year, is quickening its steps of strategic layout in the key regions of China. Recently, its Board Chairman Hui Ka Yan led a party of Evergrande executives on a fact-finding trip to Heilongjiang Province, where they met with Governor Wang Xiankui and other leaders of the province at all levels for talks about matters relating to intensified investment. An original report from Sina Leju follows:

According to public information, because of the tightening control over the real estate industry of China, Chinese real estate enterprises have generally done a poor job in sales, with the exceptions of Wanke and Evergrande, who remain two winners. Wanke sold 8.412 million square meters in the first 9 months and earned 97.08 billion yuan, up 39.9% and 35.9% respectively from the same period of last year, just an inch away from 100 billion yuan of sales. Evergrand sold 10.458 million square meters and earned 69.26 billion yuan, up 83.5% and 94.5% respectively, equal to 98.9% of 70 billion yuan, its target for the whole year.

Market participants point out that the rising results of the two industry leaders in a falling market have benefited from a development mode of high turnover and widespread urban layout. In the real estate circles of China, the pattern of wrestling between the two leaders has long been in place as Evergrande is spurting to become the second leading Chinese real estate enterprise achieving over 100 billion yuan of sales. According to statistics, by the end of September, Evergrande had 104 projects on sale, most of which are quality projects in tier-2 or 3 cities. For Wanke, about 80% of the area sold in the first 9 months were in tier-2 or 3 cities.

In the context of satisfactory sales, Evergrande and other leading real estate enterprises of China are acting against the tide in the hope of further expanding their development space. Since October 29, Hui has inspected the projects in Mudanjiang, Harerbin, Qiqihaer and other cities of Heilongjiang Province, where he exchanged ideas with the major leaders of the local governments. Hui noted that Evergrande would increase its investment in the province.

Since it made huge investments in the province at the end of last year, Evergrande has obtained the right to the use and development of 7 plots in cities like Harbin, Daqing and Qiqiharer. In the Golden Week of this year's National Day, Evergrande Oasis, the first project of Evergrande in Harbin, went on sale and drew over 1,000 buyers, creating a boisterous scene of hot sales in the city.

SOURCE Sina Leju