On August 30th, China Evergrande (HK.3333) released 2016 interim results. The data shows that several core indicators of Evergrande continued to maintain rapid growth, with the total assets, turnover, cash balance and other indicators ranking first in the industry.

Scene of the press conference

As of June 30th, the total assets of Evergrande reached RMB 999.92 billion and remained first in the country, up 32.1% compared to the end of 2015, becoming the first domestic real estate enterprise with trillion of total assets. The turnover reached RMB 87.5 billion, an increase of 12.6% over the previous year, RMB 12.7 billion higher than Vanke. The cash balance reached RMB 212 billion and continued to rank first in the country, exceeding the total of Vanke and China Overseas Property.

At the same time, Evergrande’s profitability continued to improve. Of which, the core business profit reached RMB 7.81 billion, exceeding RMB 2.475 billion than Vanke. Furthermore, the core business profit of real estate was RMB 10.49 billion higher than Vanke.

It is worth noting that, according to the latest bulletin released by CRIC, an authoritative research institution, the equity sales of Evergrande in the first seven months reached RMB 175.55 billion, ranking first in the industry. This indicator is recognized as the truest reflection of the strength of a real estate enterprise.

"Obviously, Evergrande has fully surpassed Vanke and become a new industry leader." Insiders pointed out that Evergrande’s competitive advantages, such as focusing on product quality, strict cost control, accurate market positioning and large-scale rapid development capability, ensuring its sustained and rapid growth.

Data show that since it was listed, Evergrande maintained rapid and steady development momentum. The total assets increased from RMB 63.1 billion to RMB 999.92 billion, an increase of nearly 15 times. The sales volume increased from RMB 30.3 billion to RMB 201.34 billion in 2015, with compound annual growth rate of 37.1%. The core business profit increased from RMB 290 million to RMB 11 billion, with compound annual growth rate of 83.3%.

According to the insiders, with continued hot selling of Evergrande’s houses since this year, the Company’s performance has been rising. The sales volume in the first seven months reached RMB 184.8 billion, an increase of 82.6% over the previous year. With the continuous implementation of "no-reason house return", the acquired high-quality projects into the market in succession and the continued hot selling of Ocean Flower Island, Evergrande is expected to accomplish the sales target of over RMB 300 billion.