Business |  Real estate

Evergrande gains from small-city strategy

By Cao Qian  |   2011-8-31  |     NEWSPAPER EDITION

The story appears on Page A14
Aug 31, 2011

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EVERGRANDE Real Estate Group Ltd, one of China's top home sellers, said yesterday net profit more than doubled in the first half of this year as it gained from its strategy of focusing on smaller cities instead of first-tier ones which helped boost its sales.

Net income attributable to shareholders for the six-months ended June 30 soared 145 percent from a year earlier to 5.7 billion yuan (US$892 million), the Guangzhou-based developer said in a statement to the Hong Kong stock exchange.

Its sales between January and June jumped 102 percent annually to 42.32 billion yuan while the total area sold surged 83 percent to nearly 6.12 million square meters, the most in the country, the developer said.

Six-month revenue surged 57 percent from same period a year earlier to 32.06 billion yuan, while income from property development accounted for 98.9 percent of the total.

Evergrande said it will launch all its projects in the second half in second- and third-tier cities.

The developer projects that sales in third-tier cities may account for 40 percent of the group's total for the year.

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