Southern Metropolis Daily 2010-7-13 Zhan Qiyue

Yesterday, Evergrande Real Estate released the sales briefing of June in Hong Kong. The sales briefing indicated that benefited from the extension of the sales strategy of 15% discount, the sales amount of Evergrande Real Estate in June reached a new high again. The contracted sales amount was 4.8 billion yuan, with an increase of 18.5% month-on-month, continuing the momentum of month-on-month increase of the sales amount in the first half of the year. In the first half of the year, the total contracted sales amount was 20.98 billion yuan, which was 58% of the original yearly plan.  

It is noteworthy is that some large-scale real estate enterprises such as Vanke, Greenland, and R&F Properties have failed to reach half of the scheduled target determined in advance at the opening of the year due to the macro-control of the real estate market. Most real estate enterprises worry that the yearly sales target cannot be reached. But Evergrande Real Estate announced to adjust the yearly sales target to a higher level again which is 40 billion yuan with an increase of 30%.

Some analysts held the opinion that the reasons why Evergrande could keep the high-speed stable growth in the situation that the market of the first half of the year was not active were the high quality and low cost of the products which had been recognized by the market. Evergrande virtually benefitd from the advanced strategic arrangement. Evergrande has made arrangements to build residences in second and third-tier cities as early as 2004. With the residences in areas with high appreciation potential and high growth, Evergrande has seized opportunities in the market. Now the harvest season finally comes.

Moreover, according to insiders, the prompt obtainment of huge overseas investment up to 1.35 billion yuan has laid foundation for the response of Evergrande to the adjustment of the domestic and international capital market and real estate market, the continuous stable operation, and the expansion in the adverse situation. In addition, Evergrande has insisted on the principle that “Cash is the king”. It keeps sufficient cash balance every month, thus ensuring the anti-risk ability of the Company, the stable operation, and the sustainable development.