Evergrande's Financial Report 2020: High Growth, Scale Control, Debt Reduction

Real Estate Author: 石伟 Mar 31, 2021 08:23 PM (GMT+8)

On the evening of March 31, China Evergrande released its 2020 annual report. According to the data, in 2020, China Evergrande's operating revenue was 507.248 billion yuan, a year-on-year increase of 6.2%; its net profit was 31.4 billion yuan, a year-on-year increase of 45.0%.

Evergrande

The financial report of China Evergrande in 2020 can be reduced to three keywords: high growth, scale control and debt reduction.

  • In terms of high growth, the contract sales volume of China Evergrande was 723.2 billion yuan, a year-on-year increase of 20%; the             sales collection rate was 90%, a year-on-year increase of 12%;

  • In terms of scale control, in the second half of 2020, the company's soil storage area will measure a drop from 240 million square                 meters to 231 million square meters.

  • In terms of reducing liabilities, as of the end of March 2021, the company's interest-bearing liabilities decreased to 674 billion yuan.

It is also worth mentioning that the capital operation ability of China Evergrande has evolved. Starting from March 2020, China Evergrande has since raised a total amount of HK $88.8 billion, including:

  • Evergrande property attracted HK $23.5 billion and raised HK $14.08 billion through listing;

  • Evergrande motor's two rights issues of HK $30 billion;

  • China Evergrande rights issue of HK $4.3 billion;

  • Hengteng network sold shares of HK $600 million;

  • Fangchebao introduced a strategic investor of HK $16.35 billion.

According to Xu Jiayin, chairman of Evergrande's board of directors, the group plans to go public at the end of 2021 or early 2022.

According to the data, RV Bao group was reorganized and established by Evergrande and 152 intermediaries nationwide in the second half of 2020, and officially launched in December 2020. In March 2021, it successfully introduced strategic investors such as Hony investment, CITIC, Zhongrong and Zhou Dafu, with a total investment of 16.35 billion Hong Kong dollars.