| Since 30 years of reform and opening up, China's real estate industry has been accelerating; the whole industry can get huge profits easily. Owing land and capital, a real estate company can achieve the goals of rapid growth even without professional skills and meticulous management. Which has encouraged companies to become crazy to the land; they create one another "land king." However, in 2008, the world economic crisis highlighted China's real estate industry of its high debt and the huge risks of impulse. In real estate sales area, it underwent the condition that a rapid decline of the sales, house prices fell down. This indicated the weak of some enterprises in the capital chain and ability to withstand the risks. If the nation has not taken so many measures to stimulate the economy and makes a recovery of the real estate market in 2009, most of them would have been bankrupt or closed down.The competitions between modern enterprises are often manifested in long-term, comprehensive competitiveness of the competition. The key for the enterprises to survive and develop is to format and to maintain constant innovation and core competitiveness. In this case, the company's goal is long-term interests of enterprise, not just to pursue the maximization of short-term interests. Short-term speculative investment or strategic adventurism may help to make highly profits, but can not guarantee long-term development of enterprises, and the enormous risks of a speculation may making an already well-run enterprises facing bankruptcy crisis.Therefore, the evaluations of its results of operations can not only concerns about their short-term profit, but also the risk factors. Performance evaluation of enterprises can evaluate the operating performance of enterprises, and the more important, can guide the future of the enterprise business strategy.This article firstly follows "The Interim Measures of the Central Enterprise Performance Evaluation" established by SASAC in 2006, which provides indicators of financial performance to evaluate the comparative operating performance of the top four listed companies on the Chinese real estate industry:Vanke, Poly, CMPD and Gemdale in the year 2007-2009. The evaluation of the four companies is from four aspects:the profitability, the asset quality, the debt risks and the business development. And then the paper summarizes the various parts scores on the company's operating condition of the overall evaluation analysis.Then, to calculate the four companies Economic value added (EVA) in 2007-2009 in the way that established in "The interim measures of the central business leaders performance appraisal" in 2009. The paper uses two cost rate of capital to calculate:one in 5.5% according to SASAC, one determined by the capital market. And both results were analyzed and compared.Based on the above analysis, the paper compares the financial performance and the EVA calculation results,, and then analyzes the consistency and different of them, and explain the reasons for different results. And above all, making a full text of the conclusions and outlook.This article mainly adopts the theory with practice, and uses the two files of the performance evaluation of the central state enterprises in practice, comparative analysis, a testament, and compared the scores to the standard of the business performance evaluation. |
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