Sales repayments are at record highs
On the evening of May 6, China Evergrande (3333.HK) released unaudited operating data: in April, monthly sales reached 65.21 billion yuan, an increase of 11.6% year-on-year; sales area 713 10,000 square meters, an increase of 28.5% year-on-year; sales receipts of 64.65 billion yuan, an increase of 70.8% year-on-year, all three data hit a record high for the same period.
The announcement shows that from January to April 2020, Evergrande ’s cumulative sales have reached 212.57 billion yuan, an increase of 19.4% year-on-year; the cumulative sales area is 23.711 million square meters, an increase of 43% year-on-year. It is worth noting that just one third in 2020, Evergrande ’s cumulative repayments reached 178.2 billion yuan, which is close to the total of 187.4 billion yuan in the first half of last year, an increase of 60.8% year-on-year.
As previously stated by Xu Jiayin, chairman of the board of directors of China Evergrande, at the performance briefing, “accelerating repayment” is becoming an important part of Evergrande’s “high growth, scale control, and debt reduction” in 2020.
As the direct initiator of “buying a house online” during the epidemic, Evergrande has launched a nationwide “3,000 yuan fixed house”, “78% off house purchase” and “619 real estate prices” since February 13 “Public” and other preferential policies took the lead in rushing the market.
Unlike Evergrande ’s year-on-year increase, most companies in the real estate industry are still in a painful period after the epidemic. CR data show that the full-scale sales performance of TOP100 real estate companies fell by 15% year-on-year in April 2020. Despite the recovery of the May Day holiday just past, it is still unknown when the growth of TOP100 housing companies will turn negative.