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Xinyuan Real Estate Co., Ltd. Message Board

  • chinamannyc2003 chinamannyc2003 Mar 26, 2013 7:56 AM Flag


    Evergrande 2012 Underlying Profit Falls 28% on Property Curbs
    By Bloomberg News - Mar 26, 2013 4:54 AM ET

    Evergrande Real Estate Group Ltd. (3333), China’s biggest developer by sales volume, posted a 28 percent decline in 2012 underlying profit after the developer cut prices as the government implemented property curbs.
    Profit excluding valuation gains or losses fell to 6.2 billion yuan ($1 billion) from 8.6 billion yuan, the company said in a statement to the Hong Kong stock exchange today. That compares with the 7.7 billion yuan median estimate of five analysts surveyed by Bloomberg. Revenue jumped 5.4 percent to 65.3 billion yuan.
    Evergrande’s earnings declined as home prices were hit the most in China’s less affluent third-tier cities where the Guangzhou, southern China-based company focused its expansion last year. Prices in the eastern city of Wenzhou dropped 11 percent last month from a year ago, leading declines among 70 cities the government tracks.
    “The developer had to cut prices to meet sales target last year,” Alan Jin, a Hong Kong-based property analyst at Mizuho Securities Asia Ltd., who has a neutral rating on the stock, said before today’s earnings. “While home prices recovered in major cities, the property markets of smaller cities which it focuses are still lagging behind.”
    Evergrande sold a total of 15.5 million square meters (167 square feet) of properties during 2012, up 27 percent from a year earlier, the most among Chinese developers, it said today.
    New Projects
    The company started marketing 58 new projects in 52 second and third tier cities last year, it said.
    “The group will will maintain strong sales efforts from the beginning of the year, set more proactive internal sales targets monthly, and review and adjust specific sales policy according to market conditions at any time to ensure strong growth in annual contracted sales,” Chairman Hui Ka Yan said in the statement today.
    The de

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