Annual Report 2009 - Greentown China Holdings Limited

CEO's
Review
Impressive Sales Surge
The Greentown Group recorded a massive growth in our
sales during 2009. The contracted sales hit a record high
and put us on the top of our peers in China.
As at 31 December 2009, the total contracted sales of the
Greentown Group together with associates and jointlycontrolled
entities (collectively, the “Greentown Group”)
surged 238% year-on-year to RMB51.3 billion, of which
RMB33.4 billion was attributable to the Greentown Group,
representing an increase of 227%. The Greentown Group’s
total contracted gross floor area (“GFA”) grew by 184%
to 3.5 million sq.m., of which 2.15 million sq.m. was
attributable to the Greentown Group, representing an
increase of 169%. The average selling price of our aboveground
properties increased by 23%, from RMB11,910 per
sq.m. in 2008 to RMB14,684 per sq.m. in 2009.
The Greentown Group’s property projects, ranging from
ordinary apartments to high-end villas, all achieved
exceptional sales performance. The pre-sale rate jumped
by 37 percentage points, from 52% in 2008 to 89% in 2009,
while the pre-sale rate of our apartment projects even
reached 93%.
Dear Shareholders,
In 2009, thanks to the PRC government’s
implementation of a proactive fiscal policy and
a moderately loose monetary policy, together
with the introduction of domestic consumption
stimulus packages, confidence in the real estate market
rebounded after it underwent serious adjustment in
2008. Increased market demand brought about explosive
growth in property sales volume and drove up housing
prices. Foreseeing this market trend, we reinforced our
commitment to superior product quality, which helped
push the Greentown Group’s results to new highs in 2009.
This success proved once again that our focus on quality
not only helped the Greentown to stay proactively in an
ever-changing market but also gave us added strength
to excel. We believe that, as a winning strategy against
cyclical fluctuations, the Greentown Group’s commitment
to product sophistication has also enhanced shareholder
value.
In geographical terms, we further strengthened our
core position in Hangzhou and other areas in Zhejiang
province. Meanwhile, we extended our influence to
Shanghai, Beijing and other first-tier cities. Our total
contract sales in Zhejiang province, Shanghai and Beijing
accounted for 86% of the total. The immense value of
the Greentown brand was further highlighted by our
increasingly dominant position in the high-end property
market. Hangzhou Sapphire Mansion and Hangzhou
Sincere Garden were both fully sold within a month of
coming onto the market. Beijing Majestic Mansion was
one of the best-selling luxury properties in Beijing. The
first phase of Shanghai Bund House was sold out on
the first day of launch. In terms of GFA sold, Shanghai
Rose Garden ranked first among high-end villas with
benchmark above RMB15 million per unit in Shanghai.
Wenzhou Lucheng Plaza achieved exceptional sales of
RMB6.8 billion, making it China’s No. 1 project in terms
of sales. Besides Zhejiang province, Shanghai and Beijing,
the Greentown Group proactively explored other areas
that have high growth potential, and we further extended
our brand impact and market coverage to Shandong
province, Jiangsu province and other provinces.
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Greentown China Holdings Limited Annual Report 2009