Hong Kong Commercial Daily 2010-8-31 Chen Yujing

Evergrande Real Estate (3333) announced its interim results yesterday. In the sluggish market, its turnover reached 20.37 billion yuan (RMB, similarly hereinafter), increasing by 1142% compared with the 1.64 billion yuan of last year; the net profit increased by 366% compared with that of the same period of last year, totaling 2.33 billion yuan. After the investment real estate appreciation and the financial guarantee return are deducted, the net profit in the period was 1.94 billion yuan; the profit per share was 0.16 yuan, increasing by 300% compared with that of the same period of last year. No interim interest is distributed.

The business turnover increased to a large extent. Among them, the turnover of the Real Estate Development Department was 20.25 billion yuan, increasing by 12.59 times compared with that of the same period of last year; in addition, as the Group carried out the sales promotion through the 15% discount in the first half in Mainland China, it obtained the contracted sales amount of 20.98 billion yuan, increasing by 104.9% year-on-year, the sales area reached 3.339 million square meters, increasing by 32.5% compared with that of the same period of last year, the average price is 6,282 yuan/square meter, increasing by 32.5% year-on-year. 89.3% of the contracted sales amount comes from second- and third-tier cities such as Changsha, Chongqing, Taiyuan, Chengdu, Wuhan, and Shenyang.

Hui Ka Yan, Chairman of Evergrande, said that the Group had just acquired a commercial property in Guangzhou from Kaisa Group (1638) at the acquisition price of about 1 billion yuan. He said that the location of the property was excellent and the price was reasonable, which was only 16,000 yuan per square meter, with relatively large margin compared with the 24,000 to 28,000 yuan per square meter for adjacent properties; he also noted that the Group would gradually invest in the commercial real estate market in the second half of this year. But it should be guaranteed that the Group has sufficient fund, and the sales amount and the sales area of real estate are in the leading position in the industry.

As of the end of June, the total amount of cash of the Group was 18.49 billion yuan, increasing by 28.6% compared with that of the same period of last year; the land reserve was 72.385 million square meters, and the average cost of each square meter was 519 yuan; the area of projects under construction was 23.055 million square meters.