Evergrande's Sales Amount of 14.29 Billion Yuan in January and February 2011, the Highest in the Mainland Real Estate Enterprises listed in Hong Kong

BEIJING, March 14, 2011 /PRNewswire-Asia/ -- On March 14, Evergrande (3333.HK), the leading real estate enterprise in China, released its achievements in Hong Kong. It announced that the Group's sales amount of February 2011 was 4.5 billion yuan, and the sales area was 684,000 square meters, with an increase of 261.6% and 299.9% respectively on a year-on-year basis. Thus, Evergrande's sales amount of January and February was 14.29 billion yuan, with an increase of 202.7% on a year-on-year basis; and the accumulative monthly sales area was 2,092,000 square meters, with an increase of 176% on a year-on-year basis, creating a new high in the history of Evergrande. An original report by Sina Leju follows:

It is learned that the full-year sales target of Evergrande in 2011 is 70 billion. Evergrande has achieved 20% of the target amount in the first two months, becoming the real estate enterprise with the highest target achievement rate in China.

Leading in the Mainland Real Estate Enterprises in Hong Kong

By virtue of the strong "good start", Evergrande's sales amount in the first two months of 2011 takes the absolutely leading position in the mainland real estate enterprises in Hong Kong. According to the relevant data, the mainland real estate enterprises in Hong Kong with the top 7 sales amount of January and February 2011 are Evergrande, China Overseas, Longfor Properties, Country Garden, Agile Property, Shimao Property, and RandF Properties, with the sales amount of 14.29 billion yuan, 12.015 billion HKD (converted to RMB 10.18 billion yuan), 7.32 billion yuan, 6.8 billion yuan, 6.7 billion yuan, 4.33 billion yuan and 4.06 billion yuan respectively.

By contrast, Evergrande's sales amount of the first two months is 2.19 times of the average value of the other 6 enterprises. Evergrande's sales amount of February is 26% higher than that of China Overseas ranking in the second place, which is 4.245 billion HKD (approximately RMB 3.58 billion yuan), and is 3.73 times of that of the enterprise ranking in the last place. Previously, Evergrande's sales amount of nearly 10 billion yuan in January is 48.3% higher than that of China Overseas ranking in the second place, which is 7.77 billion HKD (converted to RMB 6.6 billion yuan, and is 3.45 times of that of the enterprise ranking in the last place.

Evergrande keeps the leading position in the industry, showing its capacity to deal with the market risk, and also showing that Evergrande has exhibited its strategic advantage in the nationwide layout for a long term.

With Forward-looking Strategy to Avoid the Policy Risk

Under the dual influence of the "Purchase Restriction Order" introduced in many cities in China and the traditional sales off-season of February, Evergrande's sales amount has achieved great increase in the adverse market, benefiting from its high cost-effectiveness products, scientific and reasonable product structure and the key strategic layout in the second-, third- and fourth-tier markets.

According to the disclosure from this news conference, among the 60 cities where Evergrande has developed in, the number of third- and fourth-tier cities accounts for 62%, which are basically not influenced by the policy of purchase restriction. In the current second-tier cities, most of the projects of the Group are located in the non-hotspot areas, without or with little influence of the policy of purchase restriction. It is learned that by the end of February, Evergrande has launched projects in the following 11 third- and fourth-tier cities, namely, Foshan, Qingyuan, Ezhou, Yichang, Liaoyang, Danzhou, Pengshan, Luoyang, Xinyang, Huaian, and Baotou.

In addition to the reasonable regional layout, the product structure of Evergrande is also scientific and reasonable. It is understood that the medium-end and medium-to-high-end products of Evergrande, accounting for 70%, focus on the first house purchasers. Even in the areas of purchase restriction, they are also influenced to a very small extent. 20% of the tourism properties are distributed in the third- and fourth-tier cities without the policy of purchase restriction or the areas of non-purchase restriction in the second-tier cities, and focus on the groups with purchasing power in the first- and second-tier cities. Therefore, Evergrande still has good market performance. In addition, Evergrande sticks to the concept of real estate vital to the people's livelihood, as well as the resource integration of the whole industrial chain and the overall product cost control, enabling the projects to become the high-quality properties the ordinary house purchasers are able to afford, thus effectively prizing the market of rigid demand in the country.

SOURCE Sina Leju