Southern Metropolis Daily, April 13, 2010

Prepared by Rong Mingmai

Evergrande Real Estate Group Co., Ltd. issued the results and achievements throughout the year 2009 yesterday. The revenue and gross profit of the Group as of December 31, 2009 were 5.72 billion yuan and 1.95 billion yuan respectively, indicating a year-on-year growth of 58.4% and 31.8% respectively. The profit attributable to shareholders was 1.05 billion yuan, an increase of 98.1% compared with that of the same period in the previous year, with the profit per share of 7.4 cents. The above achievements created the highest record in the history of Evergrande, fulfilling the Group’s commitment to shareholders and investors when listing. The Board of Directors suggested allocating a final dividend of 0.7 cents per share in 2009.

As to the house price in 2010, Xu Jiayin, Chairman of the Board of Directors of Evergrande, said to the reporters yesterday that the macro-control played a certain role. However, the experience in 2005 suggested that macro-control was just for the purpose of stable and healthy house price, but the house price of second- and third- tier cities would be high.

Within the year, the capital structure of Evergrande Real Estate Group was further optimized with the initial public offering for fund raising of 3.19 billion Hong Kong dollars; meanwhile, the excellent real estate sales performance throughout the year made the financial situation of the Group further strengthened. By the end of the year 2009, the Group had been in a state of holding net cash, and had held the cash of 14.38 billion yuan, an increase of 649.0%, with the total amount of bank loan of 14.18 billion yuan, the unused bank financing amount of 20.45 billion yuan, and the recoverable contracted sales amount of 5.7 billion yuan. The steady financial management policies and the sufficient financial resources made the business of the Group in a rapid and steady growth.

Within the year, there were 11 completed projects in total for the Group in 10 cities of China respectively, with the as-built construction totaling 1.189 million square meters, and there were 25 projects in total of which the housing is handed over, with the annual housing handover amount of 5.04 billion yuan, indicating a year-on-year growth of 44.4%; the annual housing handover area was 881,000 square meters, indicating a year-on-year growth of 147.8%.

By the end of the year 2009, Evergrande had owned 41 projects under construction with the salable area under construction of 16.479 million square meters, including 32 on-sale projects and 13 projects that are not on sale yet, fully prepared for the sustainable sale in 2010.

As to the land reserve, Evergrande adopted the look-ahead strategy to focus on the provincial capital reserved land of China with high economic growth and great appreciation potential of real estate price. By the end of the year 2009, the Group had owned 57 real estate projects in 25 major cities of the country, with the high-quality and low-cost land reserve of about 54.976 billion square meters, which could meet the need for large-scale development in the next 5 years.

In this year, the Group will constantly pay close attention to the high-growth cities of China and regions within cities with beautiful environment, reasonable planning, developed traffic, and great potential of land appreciation, and will gain the large-scale high-quality and low-cost land reserve. Throughout this year, the Group will newly purchase 13 pieces of land in 9 cities of China, including Chongqing, Xi’an, Taiyuan, Hefei, and Changsha, with the increased construction area of land reserve of 13.08 million square meters. In addition, the Group also entered into Nanchang, Shijiazhuang, and Haikou to effectively seize the rapid growth of emerging markets and the development opportunity of constructing Hainan to be an international tourist island, while continuing to consolidate the strategic layout in the whole country.

In January 2010, Evergrande successfully issued bonds of 750 million U.S dollars, and fully repaid the structured secured loan of 290 million USD that will expire in October 2010, making the structure of long-term loan more reasonable.

The consistent cautious financial management polices and the sufficient financial resources of Evergrande provided adequate safeguards for the rapid growth of the Group.

Looking into the business environment of 2010, Doctor Xia Haijun, Vice-chairman of the Board of Directors and President of Evergrande Real Estate Group, said, “in the view of the Board of Directors of Evergrande, the real estate industry of China in 2010 will face a more complex market and police environment. The gradual recovery and rapid growth of macro-economy, the accelerated urbanization, the expected inflation, the increased supply of land, and the increased proportion of welfare housing will support the industry to keep steady and rapid development, but the macro-control including credit, industry, and tax regulation polices caused by the inflation and the increased house price will have a certain effect on the market. The real estate market might not exclude the interim and local fluctuation under the overall stability.”