COMPANY STRATEGIES IN 2017

In view of the new circumstances and opportunities presented by the macro economy and the industry, the Group will, according to the set targets and requirements of the fourth phase of strategic development, perform its various tasks around the principles of ‘optimizing management, creating values, elevating efficiency and accelerating results’ to build momentum on a sound, sustainable and steadfast basis.

• Define authority and responsibilities and fortify execution prowess
  

The Group will empower the positioning of income center, cost center and profit center in each business to determine its regional strategy, resource allocation, business execution, promote localized management of all resources to encourage independence of each business and initiatives to deliver better performance. The Group’s head-quarters will continue to provide support, set standards, control at high level and share monitoring to ensure effective synergy among various businesses and thorough execution of the Group’s development strategy. The full-cycle operation plan of projects will be a powerful starting point for the Group’s internal management and the basis on which staff deployment, setting of assessment standards and financial forecast will be determined. Middle and senior management will be appraised and incentivized by measuring quality of execution against set standards objectively .

• To be performance-oriented and translating capabilities into values.

As capabilities and accumulated cooperation resources of the Group’s various businesses mature, the Group in 2017 will translate these into values for the Company and shareholders. Land plots will continue to be acquired flexibly and through various channels to ensure quality in the rapid expansion of new projects. Products will be professionally and exquisitely crafted with an artisan spirit, and services will be refined continually. These changes will be turned into brand premium. Co-operation with excellent partners will be extended to more areas and on a larger scale. More talents will be recruited and a more performance-oriented incentive mechanism will be in place to ensure the above-mentioned translation.

• Exploit fully all resources, control costs stringently to raise efficiency .

The Group will encourage awareness of resources across the board. First, it will raise the efficiency of financial resources by doing multi-faceted and frequent analyses on operational activities to ensure the best allocation, increase capital turnover and the ability to deliver results. Secondly, it will continue with asset management started in 2016, provide high incentives and invigorate inefficient assets. Thirdly, it will watch closely resources spent on development and operation. The Group will augment sales capabilities in all aspects and build systems to ensure all resources are deployed at appropriate market value. The Group will also promote comprehensive cost management to delineate all costs, apply stringent assessment and execution of cost-control over the full-cycle of each project, boost relationship between cost-control and reward to further enhance cost-competitiveness in all businesses.

• Fully grasp the industry’s tempo to enhance performance.

The Group will grasp opportunities presented by fluctuations in the industry and make the most of all carefully garnered advantages to enhance performance in all aspects. A scheme to boost sales volume of property development has been launched within the year. While adhering to the investment criteria, the Group will match the rate of increasing land bank replenishment with that of sales volume. New entries to certain important tiertwo cities and regions have produced results as this annual report is released. As regards investment property development, the Group will make major breakthroughs in the scale, profit model and development capability. It will raise significantly or even double the business scale of property management and senior living while aiming for exponential growth in innovative businesses. For real estate finance, the Group will also boost the operating capability of capital appreciably, raised the ratio of equity investments and overseas investments in order to double the scale of managed assets in the next few years and seek to approach both mainstream and alternative asset management platforms globally .