On March 29, Evergrande Real Estate (HK.3333)  held the press conference for releasing 2015 annual results in Hong Kong. The data show that several indicators of Evergrande grew rapidly and the total assets ,net profit, cash balance and other data were leading industry.

According to the annual report, by the end of 2015, the total assets of Evergrande reached RMB 757.04 billion, an increase of 59.6% over the previous year, which consolidated its position as a real estate enterprise with the largest scale in China, a sharp increase of 1099.7% over the year 2009 when Evergrande was listed.

Scene of the press conference for releasing 2015 annual results

While the asset size grew rapidly, the cash flow and other financial indicators maintained a steady trend. By the end of 2015, the cash balance of the Company reached RMB 164.02 billion, ranked first in the industry, a sharp increase of 175.7% over the year 2014.

The data show that last year Evergrande realized a business volume of RMB 133.13 billion, an increase of 19.5% over the previous year, with a net profit of RMB 17.34 billion. In the meantime, the contracted sales volume, contracted sales area and other indicators hit record highs. Among others, sales volume was RMB 201.34 billion, an increase of 53.1% over the previous year; and the sales area was 25.512 million square meters, an increase of 40.2% over the previous year.

In recent years, under the circumstances that the economic growth slowed down and the property market was being constantly adjusted,  Evergrande continued to maintain a rapid and steady development momentum. Since it was listed in 2009, the main business indicators of Evergrande increased year by year. The contracted sales volume, net profit, core net profit and cash balance respectively increased from RMB 30.3 billion, RMB 1.12 billion, RMB 0.29 billion and RMB 14.38 billion in 2009 to RMB 201.34 billion, RMB 17.34 billion, RMB 11 billion and RMB 164.02 billion in 2015.

Scene of the press conference for releasing 2015 annual results

"After being listed, Evergrande's performance maintained a sustained and rapid growth. The core lies in the high quality of the products, accurate positioning in the market, strong ability in cost control, strong ability in rapid development on large scale and other internal control and management measures. This is also the basic strength and confidence for Evergrande to launch the pioneering work of ‘no-reason house return'." An analyst in the industry pointed out that these advantages together with the strategy of "Cash is King" and stable earnings form the joint forces and become the key factors for Evergrande to lead the industry.

By the end of last year, Evergrande entered 162 cities in China, with a total of 375 projects. Among others, there were 205 projects in the first and second-tier cities, accounting for 55%; the amount of investment in the land in the first and second-tier cities accounted for 72%; Evergrande realized the strategic layout in the first and second-tier cities, which laid the foundation for the rapid sustainable development in the future.

Board Chairman Hui Ka Yan answered the questions raised by the reporters

Currently, the main business of Evergrande in real estate is increasingly consolidated. Evergrande has completed the diversified industrial layout in finance, Internet, health, culture and tourism. Among others, HDFAX launched recently has become one of the Internet finance platforms which attracted the highest attention. The prospect can be expected.

In 2015, the performance of Evergrande maintained a strong momentum, "no-reason house return" was continuously implemented, diversified industries gained momentum, Ocean Flower Island and other key high-quality projects have broad prospects. It is expected by the market that, this year, as the property market is gradually recovering,  Evergrande will continue to maintain a high growth and further go ahead of other enterprises of the same trade.

The superior performance of Evergrande has been highly praised by a number of domestic brokerage firms and foreign investment banks. On March 30, the study reports released by Haitong Securities, Guosen Securities, National Bank of Paris, Guotai Junan and other institutions gave Evergrande the rating of "BUY" or "OVERWEIGHT" and raised the target price.