below is the permanent great in June achievement release conference media question and answer factual record:

Q: From in June sale achievement which just announced looked, greatly adopted permanently 85 folded the promotion strategy indeed to obtain the good sales result, then how you did judge the second half year the house price trend? Permanent whether greatly can further adopt the reduction the strategy?

Xia Haijun: Because permanent has greatly in advance judged the national real estate situation change, therefore took the lead in May 6 to adjust the national selling price, because of the price adjustment, caused permanent greatly continues the tendency in May and in June which presented the sales volume to grow, this was cannot separate with company's strategic decision.

the second half year trend, I concrete am regard like this.Currently speaking, in June Chinese several big developers should say has adopted the partial price adjustment strategy, therefore may look obtains June sales achievement to present the quite good aspect, this has the relations with the price adjustment.As for second half year trend, from short-term blind adjustment tendency, the macroscopic policy is affects the price the important attribute, if the national developer, the nationwide developer adopts in particular positively facing market fixed price strategy, I believed central cannot again appear a severer policy, the real estate market may maintain the existing aspect. If

the house price decline aspect could not appear temporarily, did not remove the country to be able further to appear a severer policy.Certainly this kind of policy adjustment, from long-term, regarding the national macroscopic economy is influential, I thought this also is one of central consideration factors.

Q: Undeniable, 8.5 folded the promotion to the first half year sales positive function, then how long met the policy which down 8.5 folded to be able to continue? Whether second half year can have the positive marketing strategy to be able to appear?

Xia Haijun: the permanent big strategy is very clear, is determined by the market.How does the market adjust, we are found the price in the market law of development which the common people may accept.Why has to defer to the market rule to adjust our price? This is cannot separate with company's strategic layout and company's overall strength, because has the huge land reserve, had in the Chinese 23 city widespread layouts, the company increased the anti-risk ability.But our strategic target is every year net profit must grow 20%-30%. How

realizes the total amount profit growth? Must expands our total quantity in the real estate trough and the trough, if the market rises quite quickly, development quantity small somewhat also can guarantee the profit growth; But if the country carries on the macroeconomic regulation and control, we can enlarge the sale, the expanded sales volume and the market share, by this guarantee profit total amount growth. after

the company goes on the market, to the investor guaranteed every year has 20%-30% repayment, the scale can carry on the adjustment along with the market.The market price has been high, sales volume small somewhat achieve the goal, the market price has lowered, enlargement sales volume, similar guarantee mass of profit growth, this is the company whole strategy. Why

can achieve this point? Is because has the abundant land reserve and 23 urban setting foundation.We see the nationwide developer, the reason that dares in the stern market conditions to adjust the price, is because will have the future anticipated, even if adjusted has been selling the project the price, the profit margin had the drop slightly, but the sales volume rise might guarantee the profit margin similarly.After when but the real estate market starts the growth, but also has the massive land reserve guarantee company profit total amount realization, therefore the company cannot care about sacrifice at present benefit, thus achieved the guarantee cash flows stability, this is the company important target.

Q: The permanent big strategic layout always is in 23 cities, whether later strategic layout also is this? Whether 23 cities can become the real estate business competition the place? Whether this did mean next real estate development tendency?

Xia Haijun: The permanent big these years development quite is quick, has the important relations with company's strategic layout.Should say company's has certain disparity before going on the market competition strength with the Chinese other big developers, says realistically, weStep quite late, in 1996 only then developed in Guangzhou.If locates the strategic target a city, possibly uses 10,000,000,000 Yuan only to be able in Beijing, Shanghai to throw one, two projects, but the limited fund layout in the Chinese rigid demand intense 23 cities, might realize the company these year spanning development. Because

the Chinese 23 city land price quite is cheap, common people's floor space and the housing quality are extremely low, these cities should be the Chinese real estate future main battlefield and the direction, I believed the future nationwide development chamber of commerce will take 23 cities the main battlefield competition.

took a city, could not by the big developer abandonment, because of a city population demand, the urban development scale decide throughout a city also will be the future real estate land that must fight for.But if a developer wants to become the nationwide enterprise or is in real estate undulation time performance quite stable, must have to realize 23 city layouts, the permanent big success also lies in this.

Q: You the macroeconomic regulation and control policy which appears to this year has what view? You thought which are is advantageous to the real estate healthy development, which policies cause the supply and demand contradictory aggravating, how is your appraisal?

Xia Haijun: I thought the Chinese epicycle in the adjustment the advantageous policy was the low-rent housing, the economy is suitable the housing to integrate the Chinese real estate reform important link.Should say the Chinese common people cannot be occupied by the commodity apartment person to be very many, but the commodity apartment and the economy are suitable the room are the different system, the commodity apartment market continue the speech which reduces prices, has the majority basic unit common people and the salariat cannot buy, therefore must expand the low-rent housing and the economy is suitable the room the construction, also is safeguards the room the construction.The central committee saw this point, has been advantageous to the future commodity apartment market development, also is advantageous in solves the Chinese low income common people's accommodation.

I thought the real estate is the marketability product, must defer to the market economy to operate, excessively many rigid policies can twist the profession the development, finally also can injure the national economy.Must let the real estate market health the development, must enlarge the economy to be suitable the room and the indemnificatory housing, but also has must enlarge the land the supply.

the present country macroeconomic regulation and control mainly limits the demand, reduces through the money market, through limits two, three anteroom purchase, purchases the housing including the cross region the authentication, limits the market in the demand the purchase behavior.Besides the limit demand, the supplies are extremely important, if the land supply comes up, the home price can appear the effective adjustment.

Q: You also mentioned the recent macroeconomic regulation and control measure, the recent inland real estate regulation has the loose sign, some city third anteroom loan already relaxed, how view do you have?

Xia Haijun: The present real estate market is extremely sensitive, a while said the relaxation, a while said tightens, the developer and the common people very are all puzzled.If China's real estate market price may stabilize down or has the drop slightly, appears the price including the whole real estate market the adjustment, the new turn macroscopic policy cannot again appear, this is my judgment. If

the commodity apartment market and the price, specially the hot spot city stays at a high level, the national relaxation regulation policy possibility is not at present big, even also can have severer policy appearing.

central this time regulates the goal is enable the commodity apartment price to return to the rational growth scope, certainly this also is the developer hopes, but we hope the policy maintenance continuity and the demand continually expansion.Only then supplies two fundamental policy solutions after the indemnificatory housing and the land, China's real estate market only then may the health development, the common people only then be able to buy the house which resourcess are well used.If depends on the limit demand purely, this kind of unidirectional operation or is the gradual operation, future inevitably will be able to injure to the national macroscopic economy.

the real estate relatedness is extremely big, is connected including industry, steel and iron profession, building repair profession and so on.Long-term, demanding constrains regarding the real estate market can create the national macroscopic economy the influence, central already saw this point, after the real estate price return rationality growth, I believed can have the continuous policy, cannot period of time appear some policies to carry on hit the pressure.

Q: Before has the news to call in June permanent big Shanghai project already started to begin construction, then actually the Shanghai project at present condition was how?

Xia Haijun: Shanghai's project, the time which goes on the market in the stock offering book and the company all has carried on the disclosure.At present the project earlier period preparatory stage, because of Shanghai's World Expo, the project has not been beginning construction, I believe along with the World Expo conclusion, the project can in the appropriate timeStart.

we saw very many reporters cared about to the company and Shanghai's project comparison, also proposed some viewpoints, for instance company whether enters a city in light of this? Actually 23 are the permanent big main battlefields, but a city long-term real estate market development extremely good region, therefore the company future goal will be able to choose the suitable opportunity to enter to a city in.

at present, Tianjin, Beijing, Shanghai, Guangzhou these to permanent big is in a city, Guangzhou, Shanghai, Tianjin already we already entered, if Beijing has the suitable time also to be able to enter, entered Beijing Corporation to complete the national layout.At present the provincial capital city permanent great already layout more than 20, the basically economical developed provincial capital city all had the permanent big project, but the permanent greatly final goal was establishes own in Beijing market niche.

Q: Stated in the permanent big material that, the company whole year goal is 40,000,000,000 Yuan, but the first half year already completed has surpassed 58%, then whether also had to adjust the whole year the goal?

Xia Haijun: At the beginning of this year the company indicated in Stock Exchange's announcement that, this year whole year the sales goal was surrenders to the state high 20% in last year foundation, at that time drew up the goal was 36,000,000,000 Yuan.From at present, pushes to the market comprehensively along with the company high performance-to-price ratio product, along with the market localization, the company has the confidence this year to rise 20% target harmonization to rise 30%, also amounts to 40,000,000,000 Yuan.

I have kept “living witness”, is above 40,000,000,000 Yuan.The reason that does not take the final result, must see the second half year market the situation.If the country no longer appears the new macroeconomic regulation and control policy, the company second half year sale can be better than the first half year; If has severer policy appearing, the lowest goal also is needs to guarantee the whole year realizes 40,000,000,000 Yuan sales volumes, already 36,000,000,000 Yuan accent high 4,000,000,000 Yuan which draws up compared to the beginning of the year.

Q: Some news called the national capital committee thought the recent land market is very calm, possibly can be authorized Yang Qi to buy holds the city, whether has hears such news? How does the company second half year buy the place the strategy is?

Xia Haijun: The recently land market quite was lonely, the national capital committee was authorized Yang Qi to take holds the city I to think all was the media suspicion.Generally speaking, the first national capital committee cannot have such authorization, also cannot manage so thin to takes the strategy.

second, from central looked that, some city price adjustment quite is good, some cities have not adjusted the arriving, some enterprises possibly thought the price adjustment has not achieved the national macroscopic policy the request.In the short-term the blind policy can relax, if second half year the real estate price adjustment returns the rationality, the new macroeconomic regulation and control cannot appear.The present tendency is very obvious, has already adjusted the price including the nationwide developer, or Ming Huoan carries on the large scale adjustment in the price, thus guarantees the first half year the achievement, I believed the second half year the real estate price can return the rationality.

each enterprise can draw up own strategic target, has the reduction truth, also has the truth which does not reduce prices.Some enterprises adjust the price, because it has the sufficient land reserve, the first issue of project price has adjusted, but also has the second issue of land, may take carry back this turn price adjustment.If the enterprise land reserve insufficiency, does not have the adjustment price possibility, only can flow in the satisfied situation in the cash the waiting next round high tide.

this May 6 we adjust the price time, very multimedia all said the permanent large estate fund chain had the problem.Actually permanent handles anything all to have the strategic judgment greatly, we the reason that in the beginning of the year 1- in April two financing, are we saw the national macroeconomic regulation and control has needed to adjust tendency, therefore in January from on international finances 750,000,000 US dollars, hereafter the international capital market has closed, very many enterprises send the debt not to be able to send.

I cite an example, the supposition we the project nation volume fraction all am 2, the house price has hit the speech which 85 folds, then spread to the soil-rent value dropped 7.5%, if bought the place absolutely drops 7.5%, some were 20% or is 30%, even was 50%.Through the real estate price adjustment, accumulated the sufficient cash to have to absorb the reserve land, this time did not hold the land reserve the speech to lose the once in a thousand years opportunity.

I thought 2010 has the fund real estate enterprise to develop the land the good opportunity, did not have the such good opportunity to in 2011.Permanent greatly solicits the capital and the price adjustment through the international market obtains the development the opportunity, we to June cash remaining sum are 21,000,000,000 HK dollars, the continual three months amount to above 20,000,000,000 YuanThe so large-scale cash is for in the maintenance steady operation foundation, maintains the high quality land, primarily carries on the development by 23 cities.
　 Through the real estate price adjustment, accumulated the sufficient cash to have to absorb the reserve land, this time did not hold the land reserve the speech to lose the once in a thousand years opportunity.This is the permanent large estate thought.