BEIJING, March 23, 2012 /PRNewswire-Asia/ -- On March 23, a study group composed of three institutions, i.e. Enterprise Research Institute of Development Research Center of the State Council, Real Estate Research Institute of Tsinghua University and China Index Research Institute, released in Beijing the list of the 2012 top 10 Chinese real estate enterprises in terms of comprehensive strength. Meanwhile, the report entitled "Study of 100 Top Chinese Real Estate Enterprises" was also issued, for the 9th year running since 2004. The relevant study results have become important criteria used in evaluating the business capacity of real estate enterprises and their position in the industry. An original report from Sina Leju follows:
In 2011, major policy adjustments and austere market environment led to change in the ranking of the real estate giants. In the Top 10 of Comprehensive Strength, Wanke and Evergrande rank 1st and 2nd. What is noteworthy is that the two companies that used to take the 2nd and 3rd places on the list have now been nudged out of their seats, while Evergrande has outpaced Zhonghao and Baoli and is treading on the heels of Wanke to become the strongest challenger of the leader of the industry. Wanke and Evergrande are equal in the number of classified lists they have managed to make, with Evergrande snatching 2 first places, including "Top 10 of Growth" and "Top 10 of Operation Efficiency", and 4 second places, including: "Top 10 of Scale", "Top 10 of Profitability", "Top 10 of Financing Capacity" and "Top 10 of Social Responsibility".
The report shows that Evergrande secured 1658.3 billion yuan of total sales and sold 166.79 million m2 in 2011, chalking up a year-on-year increase of 17.5% and 11.2%, both about 5 percentage points higher than the national average. While the 100 top enterprises have witnessed a continuous increase of market shares, the internal polarization within the camp is gaining speed. Again, the camp of 10 billion yuan worth enterprises has expanded and the number of 70 billion yuan worth enterprises in the top 100 has increased to 5, up from a year ago by 4.
The report points out that the 2011 top 10 enterprises of comprehensive strength have become the benchmark of national real estate enterprises because of their large scale, strong profitability and financing capacity, high operation efficiency, stable development and good growth. Reflecting on their continuous scale expansion, the average value of their sales and total assets in 2011 was both 2 times higher than the average level of the 100 top enterprises in the same period. Other figures include an increase of 45.1% in net profits, an ROE of 23%, 3.5 percentage points higher than the average level of the industry and a turnover indicator that is higher than the average level of the 100 top enterprises. The top 10 also feature a financial security better than that of their counterparts, prominent edges in financing, a more rational level of liabilities and controllable fund risks, which not only make it easier for them to find favor with financial institutions, but also have contributed to the diversification of financing channels.
Insiders point to the advantages of Evergrande: forward-looking strategic layout, an operation mode characterized by high turnover, clear-cut product orientation and products with high cost effectiveness. Ever since it got listed in 2009, Evergrande has overfulfilled sales objectives for 3 years and been the national champion in terms of the area sold for three years in a row. As a real estate enterprise with presence in the largest number of provincial capital cities and largest area under construction now in China, Evergrande is fully recognized within the industry for its operation efficiency, growth, scale and profitability.
