Evergrande’s sales in the first six months were 356.7 billion yuan. What is the company’s current prospects?

Evergrande Real Estate Group Co., Ltd., referred to as Evergrande Group. It is a Fortune 500 enterprise group integrating real estate, finance, health, tourism and sports. Its total assets can reach one trillion yuan, its annual sales exceed 400 billion, more than 80,000 employees, and it provides employment for more than 1.3 million people across the country. With more than 500 real estate projects in more than 180 cities, it has become the world's number one real estate company. With the stabilization of the epidemic, the property market in many places has recovered, and the pent-up demand in some hotspot first- and second-tier cities has gradually been released, boosting the rise in the property market. According to relevant reports, within 35 days since the launch of the Home Buying Festival discount promotion, from May 27 to June 30, 2021, Evergrande Group Properties achieved a contracted sales amount of 93.83 billion yuan and a sales return of 87.49 billion yuan.

In June 2021, China Evergrande Property achieved a contracted sales amount of 71.63 billion yuan, a year-on-year decrease of 5.8%, a month-on-month increase of 12.2%; the contracted sales area was 9.181 million square meters, a year-on-year increase of 7.34%, a month-on-month increase 17.4%; sales collection was 70.45 billion yuan, a year-on-year decrease of 6.9% and a month-on-month increase of 36.0%. Achieved sales collection of RMB 70.45 billion.

From January to June 2021, China Evergrande Property achieved a cumulative contracted sales amount of 356.79 billion yuan, a year-on-year increase of 2.3%; the contracted sales area was 43.014 million square meters, a year-on-year increase of 11.3%; from January to In June, the cumulative sales collection was 321.19 billion yuan, a year-on-year increase of 2.9%.

Evergrande has had a series of good news. First, it repaid its overseas US dollar debt in a large amount in advance. Then, by the end of June, Evergrande’s interest-bearing liabilities had dropped to about 570 billion yuan, and its net debt ratio had dropped below 100%. The red line successfully turns to green.

Last year, Evergrande’s debt peaked at more than 870 billion yuan. Now, in just over a year, the debt has dropped significantly by 300 billion yuan, far exceeding the expectation of 150 billion yuan in debt reduction set last year. Evergrande’s deleveraging plan is on the right track, and comprehensive debt reduction is being implemented steadily. Evergrande’s current operating conditions are becoming increasingly stable.