Evergrande Real Estate Group takes “great leap forward” for total assets. Yesterday, the company announced its 2012 annual result, total assets growing by 20.7% to 238.99 billion yuan (RMB, the same below) on an annual basis. Evergrande management said that in the future it will gain momentum for the real estate in the second and third tier cities, the sales growth in the next five years is assumed to be kept at 20-30% annually, and medium and long term rate of gross profit 30-35%.

Xu Jiayin, new member of Standing Committee of the CPPCC and chairman of Evergrande said yesterday that the company had completed national distribution, setting up branch in 24 provinces and three municipalities, with continuous achievement growth in the next five years by stable and healthy management team. He also expressed Evergrande will continue to invest in the Mainland football career, since it will improve company’s popularity.

This year's sales target: 100 billion yuan

Yesterday, Evergrande released its annual results up to the end of December last year, net profit declining by 21.7% to 9.18 billion yuan, and no final dividend was distributed. Xia Haijun, president of Evergrande Real Estate said that the sales target this year was 100 billion yuan, an increase of 25% over last year, sales of 11.45 billion yuan from January to February this year had been recorded, and the sales in March were still good, so it’s confident to complete the target of entire year.

Although the property market regulation in mainland continues to overweight, the “Five-year development plan” announced by Evergrande is still ahead, including annual average growth of 20-30% for contracted sales. The annual average growth of land reserve is maintained at less than 10% to control overall net debt ratio below 60%. Meanwhile, full strength will be given to residential development, and no other non-primary industry will be input.

Xia Haijun said in response to national call, Evergrande would concentrate on the housing of selling price about 6,000 yuan per square meter, which was affordable for each Chinese family. Xie Huihua, Evergrande CFO expected the medium and long-term gross margin would be maintained at 30-35%, and net profit margin at 10% by controlling cost of procurement, land and construction.

Xia Haijun revealed that Evergrande would offer a salable area of 35 million square meters a year, in which, 35% was located in second-tier cities, 65% in the third-tier cities, fully guaranteeing the annual sales area of 17 million to 18 million square meters. As of the end of last year, Evergrande had had a land bank of 140 million square meters in 122 cities across the country.

Evergrande's contract sales hit another record high to 92.32 billion yuan last year, up 14.8% per year, and the contracted sales area is 11,469.4 square meters, an increase of 26.9% over 2011, remaining the first in China.