2018 COMPANY STRATEGIES

China’s macro-economy in 2018 will continue to grow in high quality and stability. There will be more changes in the real estate market brought about by long-term mechanisms. In an ever-changing and competitive environment the Group will pursue the principle of ‘striving and progressing’ unwaveringly to accelerate development, intensify mechanisms and execute with conviction to ensure high quality and sustainable development in line with the set target and requirements of the fourth phase of strategic development.

• Strengthening strategic planning, accelerating growth in various businesses
  

The Group will grasp the challenges and opportunities presented by changes in policies and the industry to accelerate sustainable growth of our traditional principal business of residential development, raise performance across the board and continue to plan various strategic businesses in depth. For our traditional development business, the Group will continue to penetrate major city clusters and tier-two cities, adhere to investment criteria stringently, be innovative with investment modes, ensure investment scale and quality, and at the same time continue to improve cash flow management, speed up the turnaround time of projects, boost sale capabilities and systems, rejuvenate inefficient assets and increase scale without losing quality. As regards the investment property business, we will enhance performance by re-aligning assets in hand and raising operating capabilities. We will firmly remain customer-focused in our traditional property services to ensure high service quality and customer loyalty, and at the same time speed up growth in both scale and revenue. As regards real estate financing, we will adapt to policy changes, raise capital efficiency and match risks, scale and effectiveness as much as possible. To follow the trend of diversification, the Group will treat senior living, long-term rental apartment, logistics, artificial intelligence and big data as new strategic businesses and perfect various business models and profit models in order to achieve significant growth in scale from these new businesses in 2018.

• Intensifying management mechanisms, ensuring performance

The Group will intensify the management mechanisms, encourage all business departments to move from being revenue centers, cost centers and profit centers to an operating unit, to be more independent, to seek and re-allocate resources proactively, and be responsible for performance indicators and line management. The Group’s headquarters will reinforce strategic control, provide professional counseling, optimize synergy among various business departments, businesses, internally and externally, to fully realize the value of resources to support rapid growth. We will also make bold attempts in human resources, set precise incentives to motivate a fighting spirit. All these mechanisms are aimed at ensuring the rapid growth of our principal residential development business and various strategic businesses.

• Focusing on users, rolling out health contents in all products

The Group will continue to promote the idea of ‘build • healthy’ based on WELL standard. By incorporating ‘health’ in all aspects of products and services in all stages from investment, design, materials, to construction and property management, health will be an integral part of our label and image. We will advocate for uniform standards for construction and artisan spirit, protect our products’ competitive edge and customer loyalty. We will uphold the ‘userfocused’ principle in traditional property services, real estate property, senior living and long-term rental apartment businesses. We will raise our overall service capabilities and customer satisfaction through consolidation of resources and refined management.

• Implementing all measures fastidiously for mandatory execution

The Group will implement all management measures on the operation of various businesses. Firstly, the entire planning and operating duration of a project will be used as an effective management tool. Appraisal and incentive will be based on the project’s entire lifecycle unwaveringly to focus on facts and raise execution capabilities. Secondly, financial resource efficiency will be advanced through effective financial analysis and higher efficiency on financing, application and management. Thirdly, our brand value, in particular the health concept, will be resolutely promoted so that health becomes Sino-Ocean’s core competitiveness. Fourthly, risk management in all areas will be reinforced, IT system throughout the Group will be upgraded to ensure efficient and robust operation. The Group’s strategic development will be realized through fastidious implementation of the above measures and strengthened execution prowess.