New | Evergrande overtakes Vanke to become China’s largest real estate firm with annual sales of 373.73 bn yuan
Result an 85.4pc increase on last year and 24.5pc higher than its annual target of 300bn yuan. Vanke beaten into second spot with sales of 364.77bn yuan
China Evergrande Group has overtaken China Vanke to become China’s largest real estate firm, with total contracted sales of 373.73 billion yuan in 2016, an 85.4 per cent year-on-year sale growth on last year and 24.5 per cent higher than its annual target of 300 billion yuan, according to its latest filing to the Hong Kong stock exchange on Friday.
This final result put it ahead of the China Vanke, so long the jewel in the crown of the county’s vast property industry. However, Evergrande’s performance surprised few industry insiders as the company had been growing its sales momentum throughout the year.
The eclipse is a personal victory for Hui Ka-yan, chairman of Evergrande, who has long yearned for the top position and has vowed several times to become China’s top property firm.
Its shares, however, have slumped 11.23 per cent from its early-December peak through the end of last month.
due to concerns over its high gearing ratio, and its ongoing attempt to take control of Vanke in a dramatic shareholder battle.
The vice chairman of Evergrande Xia Haijun in late December promised it has “no intention to, and will not” become the controlling shareholder of China Vanke, after the insurance regulator launched a crackdown on insurers’ aggressive purchase of public companies.
At that point Evergrande had amassed a 14.07 per cent stake in its rival to become Vanke’s third-largest shareholder.
Evergrande’s shares in Hong Kong had fallen 0.39 per cent in Hong Kong by 11.20am, while Vanke’s Hong Kong share declined 0.97 per cent.
Vanke announced last night that its annual contracted sales grew to 364.77 billion yuan. It was followed by Country Garden, who announced a 308.8 bn yuan annual contracted sale . All the top three are Guangdong-based developers.
