Shanghai Securities News 2010-5-17 Panjian

Facing with the controversial price reduction incident, Xia Haijun, President of Evergrande Real Estate responded for the first time on May 16^th that Evergrande’s pricing strategy followed the market price and the sales turnover had increased several times after the above preferential strategy, which proved that the pricing positioning had gained recognition of the market. Evergrande would continue its 15% off discount policy.

Evergrande Real Estate declared on May 5^th that preferential promotion with 15% off discount would be implemented in 40 real estate projects all over China from May 6^th.。The leading price reduction by Evergrande has shocked the real estate industry. Soon after that, it was reported that Evergrande would cancel the discount policy on May 16^th.And their explanation was that May 16^th was the deadline for this round of promotion. And it's very common that the sales strategy varied in different periods.。

Evergrande explained the whole price reduction situation at the news briefing held on May 16^th. Xia Haijun said that the transaction volume decreased sharply after launching of regulating measures on real estate industry. After assessment, Evergrande determined that a nationwide 15% off discount would be launched from May 6^th on to cope with the situation of inadequate confidence on real estate market. ”

He also revealed that the company turnover had increased several times after the above promotion. For instance, the project opened in Hefei on May 16^th sold well, with 402 sets concluded till noon and the total transaction amount exceeded RMB 200 million yuan. Such a performance showed that the pricing of Evergrande had gained recognition the market.

Responding to the doubt whether the pricing reduction would continue or not, Xia Haijun expressed definitely that the price reduction would not end by May 16^th and it was dependent on the market situation when the reduction would come to an end.