2019 will be a critical year as the real estate industry in China goes through some profound changes. As the long-term mechanisms of the property market progress steadily, times are changing for the industry. Maintaining a high operation scale but slowing down of growth rate is to be expected. It is also the year in which our fourth phase of strategic development comes to a closure and the fifth phase starts off. The Group will carry out its tasks adhering to the principle of "Crafting meticulously - Getting strong and fit". We will build our inner strength seriously, raise and streamline management standard, professionalism and effectiveness, shape our core competitiveness and seek high quality growth.
Focusing on principal business, seeking high quality and sustainable
development
Regardless of a chaotic and complex external environment, the Group is firmly confident and will continue to build inner strength, further streamline the traditional residential development while improving synergy between the diversified businesses and the principal business to help the latter grow. For traditional development business, we are fully aware that to survive an enterprise must accentuate its edge in scale of the principal business. The Group will boost sales and raise profitability, speed up disposal of low yield assets, put in best efforts to get cash proceeds and cash flow, and be resolute in achieving quick turnaround. We will adhere to the strategy of investment for value and deep city penetration, target city clusters and metropolitan areas as the main development arena, focus on core cities and districts. We are steadfast in investing rationally and acquiring quality land cautiously to provide for quality and sustainable expansion. Meanwhile, the Group will implement the concept of "Building - Health" with even better commitment, with a view to satisfying customers’ needs, infusing ‘health’ into investment, design, sales and property services, providing products and services that live up to the ‘health’ standard. As for the diversified businesses, the Group will grasp the changes in policies and industries to explore and fine-tune the business model and profitability model for all businesses, to encourage synergy between the new businesses and traditional development business, consolidate internal resources to complement one another and brace ourselves for the new era.
Implement budget management in all areas, streamline operation
management capability
The Group is fully aware that it is essential for an enterprise to build core competitiveness if it is to grow. Future competition in real estate will evolve to be competition in streamlining of operation management. Only through effectively streamlined and professional management can enterprises realize quality and sustainable growth. The Group will take a grip on total budget management and whole cycle planning, go deep into the capillaries of operation to identify the real problems, analyse them and make improvements to raise operational quality and efficiency. We will fortify our business-oriented information platform to boost management prowess. The Group will also suppress costs in all areas of the principal business by standardizing products and cost control, and raise purchasing quality. We will also use multiple means to control finance cost, selling and administrative expenses, and continue to step up operation capabilities in commercial properties, offices, long-term rental apartments and senior living for higher returns.
Advocate pragmatic work methodology, reinforce operator awareness
The Group advocates a pragmatic approach to work attitude and methodology. Faced with a downward cycle, the Group will pay special attention to the fundamentals and basics, raise awareness as an operator of the importance of professionalism and effectiveness in all aspects of management. Using a financial effectiveness angle, we will try to identify factors affecting operation excellence and efficiency, improve on the basics, encourage units at the low level to increase capabilities, drive overall management to be more pragmatic and effective and ultimately on track to streamlined and high quality development.
