[Information Times] Evergrande Vows to Reach 30 Billion and Relaunch IPO Again

Information Times (Journalist Li Dongyuan): Yesterday, Xu Jiayin, Chairman of Evergrande s board of directors, responded to the questions of the media in the opening ceremony of Hengda Garden Hotel, the first hotel project of Evergrande, and talked in high profile for the first time in Guangzhou. He disclosed that the total sales of Evergrande in the first half of this year had reached 12.7 billion Yuan.

With a view to the sales of the second half of year, Xu showed his optimism and hoped that they would strive to make 10 billion Yuan in sales in the next three months and reach the yearly goal of 30 billion Yuan. As for the much-concerned issue of going public, Xu believed it depended on the status of international financial market and they would restart the process of IPO if it was appropriate.

Reach the 10-billion Goal in Half a Year

It is said that there are only six domestic enterprises of real estate that have gained more than 10 billion Yuan in sales, including Vanke, Poly, China Overseas Property, Greentown, R&F and Evergrande, of which Evergrande is the only one that has not gone public. As introduced by Xu Jiayin, the number of as-built projects of his group are 33, 25 of which has been opened for sales. For the first half of year, a total of 20285 apartments have been sold, which means the sales area is 2.65 million square meters and the amount of sales is 12.7 billion Yuan, of which 11.2 billion Yuan has been set through agreements.Xu has set the goal for the second half of year as 18 billion Yuan in sales so as to meet the yearly goal of more than 30 billion Yuan in sales.

Making Favorable Prices for the Customers as Before

As told by insiders, the achievements in sales of Evergrande in the first half of year rely largely on its recent strategy of marginal-profit marketing. With the soaring of prices in the market of real estate in the first half of year, will Evergrande stick to its strategy of marginal-profit marketing? Xu Jiayin responded that they will still hold high that strategy in spite of the market of real estate in China is full of great prospects.

We will sell our products not at high prices but at reasonable prices with high performance and price ratio provided that the market status, conditions, standards, land conditions and land locations are more or less the same, said Xu. However, he also expressed that an enterprise must follow the rules of marketing in its operation and Evergrande will follow the market in making the prices of their own products.

Restart IPO if Appropriate

It is a focusing event that Evergrande will go public in HK. In the middle of 2008, when Evergrande Real Estate Group planned to go public, the international financial crisis broke out and the market was unstable, which led to the unsuccessful raising of capital by Evergrande and the failure of going public the night before the right day.

Evergrande fell to financial winter for the enterprises. As the winter for real estate and the capital winter for Evergrande have passed, it has become a focus within the industry when Evergrande will restart its IPO with its excellent performance in sales in the first half of this year.

IPO is not an issue decided by us but by the international capital market. We will restart our IPO once the conditions of the capital market are ripe. In addition, our plan has been approved by competent authorities. So it is relatively easy for us to restart IPO. If the conditions of capital market are ripe, I believe, it is only a matter of time for Evergrande to relaunch IPO, said Xu when asked about going public. But he did not say directly about the time table.