BEIJING, Aug. 26, 2013 /PRNewswire/ -- On August 26, Evergrande released sales performance of the first half of 2013. According to the data, Evergrande achieved sales volume of RMB 44.61 billion in the first half of 2013, with a year-on-year increase of 27.3%; sales area reached 6.647 million sq.m., with a year-on-year increase of 15.2%, ranking the first in real estate enterprises of Hong Kong. An original report from Sina Leju follows.
Data showed that the cash reserve of Evergrande reached RMB 41.97 billion on June 30, 2013, reaching the peak since the listing of the company and ranking first within the industry. It has increased by 69.6% compared with the same period in 2012; together with unused bank credit line of RMB 39.48 billion, the total number of available funds reached RMB 81.45 billion, increased by 34% compared with that in the same period of 2012. With the target of breaking through RMB 100 billion sales volume in 2013, Evergrande is expected to become the first real estate enterprise with available funds of "nearly RMB 100 billion."
With a large number of available funds, Evergrande has reduced the net debt ratio from 58.4% in 2012 to 37.7%, becoming the enterprise with the fastest "debt reduction" speed and with reasonable debt structure.
The payment for land purchase to be paid by Evergrande is RMB 43.65 billion and the term of payment is reasonable: RMB 15.58 billion will be paid in the six half year of 2013, RMB 17.73 billion will be paid in 2014 and RMB 10.34 billion in 2015. As a result, it does not cause pressure to the finance of the company and the debt structure is healthy.
A lower debt ratio and abundant available funds ensure the development stability and continuity of Evergrande. This is beneficial from Evergrande's "112 plan" of "one optimization, one reduction and two improvements," among which, "one optimization" means optimizing the regional layout of the real estate project, "one reduction" means reducing the debt ratio continuously, while "two improvements" means trying the best to improve the total cash and net profit rate of main business. The net profit rate of the main business of Evergrande is 1.6% higher in comparison to that in 2012.
With advanced and excellent products, stable financial level, advanced urban layout strategy and accurate market positioning, Evergrande will keep growing stably and quickly under the rigid market environment, winning recognition of the market highly and taking the lead in the Chinese real estate industry.
SOURCE Sina Leju