Reuter's News Agency 2010-8-30 Liang Huiyi

Report from Reuter’s News Agency (Hong Kong) on August 30 — Evergrande Real Estate, the real estate enterprise of Mainland China (3333.HK) announced on Monday that the net profit of the first half of this year increased by 3.7 times year-on-year. The basic profit after the re-estimated income of investment real estate (and financial guarantee return) etc is deducted even increased by 12 times, creating the best record in the corresponding period in the history.

As of the end of June, the net profit of Evergrande Real Estate was 2.33 billion yuan, increasing by 366% year-on-year. The basic profit after the re-estimated income of investment real estate and financial guarantee return are deducted is 1.94 billion yuan, increasing by 1,193% year-on-year. The main reason is that the delivered and recorded area within the period remarkably increased. But as the sales proportion of projects outside Guangdong Province of relatively low gross profit rate increased, the gross profit rate of the Company within the period dropped to 24.3% by 9.1% year-on-year.

“In the second half year, the real estate market of China will still be facing relatively complicated policy and market environment. It is possible that there might be phased and partial fluctuations in the condition that the real estate market is stable in general.” Hui Ka Yan, Chairman of Evergrande Real Estae, said in the performance statement.

The Company issued senior notes twice this year for raising funds totaling 1.35 billion USD, and repaid in advance the structural guaranteed loan of about 290 million USD which will be due in October this year; the total amount of cash and cash equivalents is 18.49 billion yuan, and the amount of unused bank financing is 25.24 billion yuan. As of the end of June, the net liability rate of the Company is 43.3%. The amounts to be respectively paid for lands in the second half of 2010, the year of 2011, and the year of 2012 are respectively 6.54 billion, 5.96 billion, and 1.12 billion yuan.

At an early stage of this month, Evergrande Real Estate announced that the contracted sales amount totally realized from January to July was 26.06 billion yuan, and 65.2% of the full-year target, namely, 40 billion yuan, was completed.