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Total assets of Evergrande are nearly 240 billion yuan, an increase of 30 percent, with a number of indicators ranked the first around the nation

 Date:2013.03.26   Publisher:

On March 26, Evergrande released 2012 Annual Performance Report in Hong Kong, with a number of core economic indicators ranked first in the country, and scale and results kept solid growth. The annual report shows that yearly sales area is 15.485 million square meters, with year-on-year growth 27%, the first in the country; under construction area 38.98 million square meters, with year-on-year growth 6.7%, the first in the country; completion area 13.74 million square meters, with year-on-year growth 21.2% , the first in the country; achieved sales 92.32 billion yuan (RMB), with year-on-year growth 14.8%, the first of real estate enterprises in Hong Kong; operating income 65.26 billion yuan, the first of real estate enterprises in Hong Kong.

It is worth mentioning that Evergrande Group's total assets reached 238.99 billion yuan in 2012, an increase of 33.5% over the same period in 2011, and another growth leap. As of December 31, 2012, Evergrande had 229 large-scale projects in 122 central cities in all provinces, cities and municipalities, with the number of projects increasing by 22.5% on an annual basis.

Industrial analysts pointed out that by strict regulation, it is a key to win the market of rigid demand for China’s property enterprise growth. Generating power in housing field in advance. Evergrande insists to satisfy the market of rigid demand with cost-effective marketing strategies to lay a foundation for outstanding achievement by self-regulation.

The data show that Evergrande’s product positioning aims at rigid demand of creator starters and ordinary home buyers, with reasonable product structure. Among 229 projects mid-to high-end products account for 70%, holiday products 15% and high-end products 15%, in consistence with the proportion of needed property type, which meets market demand of different regions and levels. According to statistics, the proportion of owner-occupied project in the third tier cities is 86%, investor procurement only 14%, creator starter 64%, secondary and above 36%, in line with policy orientation.

In addition, Evergrande performs well in capital position and debt structure. The annual report shows that as of December 31, 2012, Evergrande held 25.19 billion yuan in cash, and available amount of money up to 61.56 billion yuan. At the same time, 72.9% of total land fund has been paid, and only 34.38 billion yuan is to be paid. With reasonable payment term, only 16.36 billion yuan shall be paid in 2013, 11.98 billion yuan in 2014, and 6.04 billion yuan in 2015 and in the future, which does not constitute financial pressure.

Meanwhile, after successful allotment of shares in January this year, the medium-term net debt ratio dramatically fell in 2012, down by 26.3 percent in only six months, below industrial safety line again, which ensures sound and sustainable growth.

Market participants said as a real estate company covering the largest number of capital cities, with largest scale and leading brand, Evergrande retains its position for champion of real estate enterprise of overall strength listed in Hong Kong and runner-up of real estate enterprise of overall strength listed in China, by virtue of advanced strategic layout, business model of high turnover, clear product positioning and cost-effective products etc, which has presented its powerful brand appeal and market competitiveness as a leading housing enterprise. Combined with its advancement in adapting regulatory livelihood development strategy and favorable policy on central new urbanization, Evergrande is expected to become a benchmark for future development of China's real estate industry.