Evergrande Real Estate (3333) announced its most updated sales amount yesterday. The contracted sales amount of last year had reached 30.3 billion yuan (RMB, the same below), which had increased by 4.02 times compared with that of the previous year, and a little bit higher than the target of 30 billion yuan. In the said period, the contracted sales area had reached about 5,637,000 square meters, which had increased by 3.97 times compared with that of the previous year, and the average contracted sale price was 5,375 yuan per square meter. In addition, Mr. Xia Haijun, vice chairman of the board of directors and president of Evergrande, held the opinion that the condition for the levy of the property tax in Mainland China was not mature yet within a short period of time.

Mr. Xia Haijun anticipated that the contracted sales amount of this year would increased by more than 20% to 30%, namely, 36.36 billion yuan to 40 billion yuan.

It is anticipated that the sales amount of this year will be about 40 billion yuan.

At the same time, Evergrande also announced that the contracted sales amount of December 2009 was about 4.03 million yuan, the contracted sales area was 654,000 square meters, the average contracted sale price was 6,157 yuan per square meter, and the contracted sales amount and the sales area had respectively increased by 8.01 and 5.69 times compared with those of the previous year.

The average sale price of December 2009 of Evergrande was 6,175 yuan per square meter. Mr. Xia Haijun said that he hoped that the average sale price in this year could stably increased based on the average sale price of last year with an increase rate of about 10%, and he anticipated that the average sale price would be around 6,000 to 7,000 yuan per square meter.

Mr. Xia Haijun emphasized that the strategy of the Company for the development in the future would still be concentrated on the development in second-tier cities. As for whether the Company will develop projects in first-tier cities such as Beijing and Shanghai, it depends on the economic strength and development strategy of the Company. Evergrande will purchase lands in the two mentioned cities at low prices.

The reserved land is enough for the development for five years

He pointed out that at present the construction area of the in-construction Evergrande projects for which the builder’s licenses had been obtained was about 16,892,000 square meters, and the construction area of the Evergrande projects for which the pre-sale permits had been obtained was about 7,787,000 square meters. Even if no new land would be developed this year, he was confident that the development target could be achieved. In addition, Evergrande would increase the land reservation in this year to keep the land reservation enough for the development for four to five years.

Until the end of December of last year, the construction area of the in-construction and salable projects and the projects that had been completed but had not been handed over to the customers was 17,710,000 square meters. Among them, the sales contracts had been concluded for 5,570,000 square meters, and 12,141,000 square meters had not been sold yet.

        The market has paid close attention to whether there will be more measures released by the government in the future for regulating the overheated real estate market of Mainland China. Mr. Xia Haijun held the opinion that the government would continue to expand the domestic demand of Mainland China this year to keep the stable increase, so he believed that there would be no large change in the macroscopical regulation policies. The real estate market regulation measures that are released recently are mainly for the excessively rapid increase of real estate prices and the investment real estate projects, and do not have serious influence on the medium and high-end residential projects, while about 70% of Evergrande projects are medium and high-end residential projects.