Evergrande 85 percent sales strategy continued to rise in May

Tan June 8, the first in the country to sacrifice a large flag of the constant land production (03333.HK) released May sales data, in dry developers in May sales are significantly down the background, This report card is a bit out of the big crowd: May Evergrande to achieve the contract sales of 4.05 billion yuan, the highest single month since the year's record, an increase of 328.6%, contract sales area of 640,000 square meters, an increase of 240.3%. The sales price of the contract was 6326 yuan per square metre, which grew 26%.　　Compared with April, the contract sales growth of 8.3%, sales area of the chain growth of 10.7%, the sales average price of the chain down 2.2%.　　Evergrande has been carrying out 85 percent sales strategies throughout the country since May 6, and has continued to this day. Evergrande President Xia Haijun This explanation: "The short-term real estate business should respect the market or the situation, price adjustment is the best way to deal with the crisis." Which enterprise first adjusted the price, which enterprises will be in the competition to seize the opportunity to win, May Evergrande sales figures prove our strategy is correct.　　"On that day, China announced the real estate sales in May 2010 of HK $3.45 billion and sales area of 418,000 square meters, the year-on-year decline of 39% and 28.4% respectively." Recent two weeks of property prices will be gradually lowered, and a large number of developers have reported sales figures for May, most of which have fallen seriously. For example, Vanke May to achieve sales area of 470,000 square meters, sales amount of 5.11 billion yuan, respectively, year-on-year reduction of 32.6% and 20.2%. Agile May Contract sales of about 1 billion yuan, the chain fell 33%.　　Shimao Real estate and decimating real estate, May sales volume of the contract also fell 40% and 48.9% respectively. The opposite view Evergrande, May 6 starts 85 percent promotion, from May 6 to May 31, the average daily contract sales amount is 135 million yuan, compared to the daily average of 64 million yuan before the promotion, rises roughly 110%　　Average daily contract sales area of 22,000 square meters, compared to the daily average of 9400 square meters before the promotion, a sharp climb of about 134%. Talk about the future of other developers will follow the constant sale, Xia Haijun to our correspondent said, it is difficult to estimate other developers on the trend of judgment, "Everyone's cognition is different, some developers lack of land stock, in order to ensure quality, prices will not fall."　　And some developers will be the next price adjustment, this is my judgment. Evergrande is still maintaining every two weeks according to market conditions to formulate price strategy, Xia Haijun revealed that in the short term to see the discount rate of 85 percent increase in space, "The price trend will be gradually reduced in the recent period of time, if not cut, the real estate enterprises will gradually increase the capital pressure." "Before the investment banking industry analysts to our correspondent pointed out that in the current tightening of macro-control situation, it is estimated that the second half of this year, the development of the Chamber of Commerce to set a lower annual sales target." However, Xia Haijun said that as of May, Evergrande had completed the year 40%Sales target, will definitely be able to complete the annual sales target.　　Data show that January to May this year, Evergrande cumulative contract sales of 16.18 billion yuan, an increase of 150.8%, the cumulative contract sales area of 2.533 million square meters, an increase of 85.2%, contract sales price per square metre 6387 yuan, an increase of 35.5%.　　The amount of debt financing has been returned to the mainland Xia Haijun said, "Evergrande issued two times earlier this year, it means that we are predicting China's macroeconomic regulation, the real estate trend this year we think the price rise space short-term is relatively small." In January and April of this year, Evergrande issued a $ two annual interest rate of $13%, 750 million US dollars and 600 million dollars respectively. Evergrande's chief financial officer, Sheihuihua, said that as of May 31, the cash balance was HK $19.99 billion, and the unused bank credit limit was 25.7 billion yuan and there was no plan to raise funds in the short term.　　And Evergrande's liabilities (including overseas issuance and domestic loans) are 24.2 billion yuan, of which 3 billion are short-term loans.　　Sheihuihua also told this reporter that the first two times this year, the capital of overseas debt, has been by Evergrande's Hong Kong companies with capital Injection (injection) of the form of smooth repatriation to mainland companies. Xia Haijun said that Heng has plenty of cash flow, also maintain a monthly sales of 4 billion yuan, so this year will also add some land reserves, "we will not seize high-end cities and hot spots, such as Beijing, Shanghai, companies will carefully enter these areas."　　As for the second line, three-tier city is the company this year and even next year will be the main entry area. Xia Haijun pointed out that the two or three-line city's property price increases relatively small, the price is not too high, the people's rigid demand is relatively strong. At present, Evergrande's sales in the two or three-line cities tend to average, for example, in May, Chongqing accounted for 11.4%, Chengdu and the surrounding 9.4%, Hefei 9%, Guangdong 8.8%, Shenyang 8.1%, Taiyuan 7.8%, Nanchang 7.5%, Changsha 6.8%, Shijiazhuang 6.7%, In and around Wuhan 5.4%.