Evergrande Achieved Sales Volume of RMB 7.78 Billion in May, with Increase of Over 90% on Year-on-Year Basis

BEIJING, June 10, 2011 /PRNewswire/ --

On June 10, Evergrande (3333.HK) announced in Hong Kong that the Group achieved the sales volume of 7.78 billion yuan (RMB, the same below) in May 2011, and the contracted sales area of 1.132 million square meters, with an increase of 92.1% and 76.9% respectively compared to that in May 2010, and with an increase of 26.5% and 29.4% respectively compared to that in April 2011. The consecutive double growth momentum on a month-on-month basis and on a year-on-year basis benefits from the fact that Evergrande, conforming to the market demand and the policy guidance, has made reasonable layout nationwide to pry the rigid demand of second and third-tier cities in China by means of its choice products of high cost-effectiveness. This strategy also enables Evergrande to become the successful example of domestic real estate enterprises keeping the sustained and stable growth in 2011. An original report by Sina Leju follows:

According to the data, from January to May, Evergrande achieved the sales volume of 33.73 billion yuan, with an increase of 108.5% compared to that in the corresponding period of 2010, and the accumulative contracted sales area of 4.863 million square meters, with an increase of 92% compared to that in the corresponding period of 2010. By the end of May, the Group had completed 48.2% of the full-year sales target of 70 billion yuan in 2011. There is no question that Evergrande will complete the half-year target of 35 billion yuan in advance.

The powerful sales performance benefits from the deep layout of Evergrande in the markets of second- and third-tier cities recently. It is reported that Evergrande opened 7 projects in May 2011, 6 of which are located in the third-tier cities, with the total full-month sales volume of the new projects of 2.52 billion yuan. By the end of May, Evergrande had had 78 projects on sale throughout the country, which is distributed in 44 cities of China. The projects in the third-tier cities are distributed in 26 cities of 15 provinces and municipalities. From the sales distribution profile of Evergrande in May, the markets of Guangdong, Changsha, Jinan, Hefei, Chengdu and Shijiazhuang had the greatest sales contributions in the current month, with balanced proportion of sales volume of projects on sale in the remaining cities. At present, Evegrande is the developer which has covered the most provincial capitals in China, and what's more, 90% of the third-tier cities covered by Evergrande have not been covered by the top 20 or even the top 100 real estate enterprises in China.

Under the environment of monetary tightening where the control of a series of macro-policies such as "Purchase Restriction Order" and "Price Restriction Order" continues deepening in the mainland real estate market, Evergrande keeps the rhythm of rapid development and fast sale and adopts the strategic decision of no land-hoarding and no property hoarding, enabling itself to avoid the domestic macro-control risk, and become the successful example that real estate enterprises keep the high growth in 2011. At the news conference, Evergrande pointed out that the Group would have more projects in the third-tier cities to open for sale successively within the year. From the point of view of the industry, the strategy of Evergrande developing in the second and third-tier cities has pioneer significance in the Chinese real estate enterprises.