Sharp Increase of 11 times in Operation Revenue in the First Half of the Year Shows Significant Effect of Evergrande's Boutique Strategy

BEIJING, Aug. 30 /PRNewswire-Asia/ -- In recent months, the listed real estate enterprises have disclosed their performance one after another in the first half of the year. In terms of the operation revenue, six real estate enterprises, including Evergrande and Vanke, have successfully exceeded ten billion yuan. Evergrande, in particular, ranks the first in this field with its operation revenue of 20.366 billion yuan. With the disclosure of the semi- yearly report, the differentiation of each real estate enterprise is gradually showing. The strategy of "high-quality product + livelihood" of Evergrande emerges.

Six real estate enterprises exceed 10 billion yuan in operation revenues Evergrande alone exceeds 20 billion yuan

According to the reports of a number of listed real estate enterprises, in the first half of 2010, six large-scale listed real estate enterprises, i.e. Evergrande, Vanke, Jonna, Country Garden, Poly and Shimao, have respectively exceeded 10 billion yuan in terms of their operation revenues. The operation revenue of Evergrande, in particular, has reached the peak of 20.366 billion yuan, increasing by 1142.0% compared with 1.64 billion yuan in the same period of the last year.

According to insiders, the high operation revenue is a reflection of the good sales performance of the above large-scale real estate enterprises last year. Take Evergrande as an example. In 2009, Evergrande achieved the contracted sales amount of 30.3 billion yuan with its great efforts in promotion. Since the beginning of this year, Evergrande has kept a good momentum in construction, and its under-construction area has reached 23.06 million square meters. Evergrande achieves rapid development, large-scale development and rapid sales in each of its projects, and offers houses in each quarter. This strategy has laid a foundation for Evergrande to sell its products in large quantities and to gain good achievements.

According to the sales in the first half of the year, the business volume of the medium-end and medium-to-high-end products of Evergrande was always maintained at about 70%, which is a reasonable proportion. With its operation revenue of 20.37 billion yuan in the first half of the year, Evergrande has achieved a net profit of 2.5 billion yuan, including the profit of 1.94 billion yuan from its main business.

Making interest concessions for the people

"The profits of Evergrande mainly come from its forward-looking development strategy, from its strong capability in cost control, and from the interest concessions made by its partners. It is the intention of Evergrande to make less profit from and build more affordable high-quality residences for the ordinary people," said Hui Ka Yan, Chairman of the Board of Directors of Evergrande, at the launch event. According to the data in the report, the average cost of the land price of Evergrande is 519 yuan / square meter. Evergrande has more than 300 strategic partners. The price of some raw materials in the centralized procurement is only 20-30% of the market price. Up to June 30, the sales amount of Evergrande reached 20.98 billion yuan, and the sales area of Evergrande reached 3.339 million square meters, ranking the first in China. From the sales data, it can be concluded that the "affordable high-quality residences for ordinary people" built by Evergrande are very popular among house buyers in the market. The increasing sales drive Evergrande to further implement its strategy of "high-quality product + livelihood."

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SOURCE Sina Leju