At the very beginning of spring festival, more than two hundred executives of middle and top level in Evergrande Real Estate Group Limited came from all over the country and even abroad in spite of the long and tiring journey to get together happily and energetically in Splendor Great World and attended the Evergrande Real Estate Group Limited’s Coordinating Management Conference. The duration for this conference will last seven days from February 8th to 14th. Xia Haijun, the President and vice Chairman of the Board will preside it, which consists of three steps including the important speech of Chairman Xu, group discussion and system establishment. The board will have a comprehensive discussion with the leaders presented in the conference about the use and management of capitals in the Group and other branches, the providing of materials, the plan’s assessment and management, the project’s construction and management, the construction of gardens and the establishment of all correlated systems.

I apologize sincerely for troubling you to attend this conference at the spring festival; however, it is the requirement of work, and it is also the requirement for our Group’s quick development. So, first of all, I just extend my best wishes to everyone here. Chairman Xu felt extremely moved and proud for the presence of all middle and top leaders at such a particular time. He expressed his expectation on the New Year, “I hope everyone in our Group can develop the spirit of hardworking and spare no efforts to achieve more.”

On the first day of the conference, Chairman Xu directly pointed out that only after one and a half years, the Group has successfully realized its strategic purpose of developing in the whole country with a promising possession of 48 premier projects in 22 cities and an increasing rate of nearly 20 times in land provision, which guarantees the Group’s quick development and periodical achievements. What Evergrande has achieved is not only the wonder in Chinese Real Estate industry, but also unprecedented in the developmental history of enterprises in China.

“The year of 2008 is very important for our Group to realize its three number-ones. It is also the year in which the ability of our team will be examined, for instances, we have to face many challenges in capital operation, land purchasing and project management, etc. The result of our Group’s quick development has two opposite sides: one is promising, and the other is the laggardness in management. In this special conference, the central Group and other departments will be divided into groups to discuss and then rearrange our work. Each group is required to put forward at least three problems, then collect them and explain thoroughly, and finally submit to the Board of Directors for solution so as to prevent the reputation of our brand and our long-term development from being damaged by these hidden problems.

Chairman Xu emphasized that heads of all departments must follow the managing system characterized with strictness, truthfulness, novelty and fineness to implement intensive management. Strictness refers to making the managing system as strict as possible, managing the enterprise strictly so as to fulfill the strictness in supervision, management and assessment. We achieved the realization that strictness guarantees high brand reputation, excellent quality, big market share and high efficiency. Truthfulness means the advocating of severe and truthful working attitude, which emphasizes a down-to-earth way in daily management. Novelty focuses on the innovation of management, system and mechanism so to cater for the requirement of management’s features of incremental development and the modern enterprise management system. Fineness encourages the realization of intensive and quantitative management in enterprise; a strict system based upon responsibility in every process will be established, therefore the implementation of quantitative index and intensive analysis will be possible, thus a complete reflection of every appraisal is required. Heads of every department should strengthen the thoughts on intensive management, realize its significance and necessity, insist on the managing idea of individual responsibility, teamwork, specification and high efficiency, continuously optimize the managing flow, specify the standards, make the managing responsibility quantitative and normalized, increase far-sightedness, scientific qualities and strictness to emphasize the plan management, achieve a good coordination and coherence of each step to improve the whole efficiency. Moreover, they should encourage their employees to take improving efficiency as one purpose, insist on the intensive service system, base themselves on their own positions, focus on details, gradually normalize their work and enhance the efficiency.

Details decide whether we can succeed or not; intensive management is not a hypocritical saying but the necessity of modern enterprise’s development. Because of the ceaseless development of society, the division of social work gets more and more specified; as it is known that a little leak will sink a great ship, therefore the weak points of extensive management emerge gradually.

“37 projects will be implemented by our Group this year, so the construction of project is the core of our work.” On February 9th, after the group discussion of every department, Chairman Xu pointed out that the focus of our Group had already been shifted from result-management to process-management with a full consideration on its unsteady and incomprehensive quality of the former one, which will probably cause the management out of control. What’s more, tendency to result-management will lead to the neglect on other work of great significance, the blind encouragement to current result and short-term interest, also the indulgence and even the abandonment of the concern with the company’s long-term interest, so that activity of shortsightedness will be unavoidable. Heads of every department should have a clear sense that our Group always pays enough attention to process-management. Every work should be implemented orderly with a strict observation to monthly plan and appraising system; meanwhile, enough attention is required to execute and normalize the process-management, including the control and supervision in process, for example, the problems like the fine decoration of room, how to realize crossed construction, and the construction in winter must be dealt appropriately. In this way, the strategy of winning through outstanding works would be developed successfully.

With the grand beginning of construction, open and delivery of buildings in the country, problems like the safety in construction, the providing of materials, the project’s rate of progress, the quality of project so on and so forth surely emerge one after another, which undoubtedly will affect the realization of our Group’s purposes. During the meeting, Chairman Xu gave some significant directions to the project management department for the work in the future, and told them how to deal with project management in such a new situation: meanwhile, he also made them clear about their responsibilities in progress, quality and safety, also the assessment standards.

Design plays a very important role in the development of real estate. The Board of Directors brought forward stricter requirements and greater tasks so as to promote the construction design center to spare no efforts in the recreation of construction procedures and the establishment of criterions. The design center is also encouraged to introduce talents, advanced technology and new materials, reduce the modification of blueprint so that design quality and appraising efficiency will be surely enhanced. All in all, the only purpose is to develop its strategy of winning with outstanding works through the promotion of its service concept, process control and project construction.
The Board required that this year the managing and supervising center should fulfill their responsibility in the whole country more strictly to implement the strategy, establish an international brand and enhance the comprehensive service and supervision in the whole Group with managing and supervising as means.

The process management emphasizes the managing on process but not the flow. Chairman Xu pointed out that focus on process is actually a focus on the more important and central issues; whereas focus on flow is no less than a way of formalism. Process management pays enough attention of the comprehensive control and supervision of the whole process in the hope of realizing the products’ zero shortcoming; but flow management aims at dealing with each procedure formally. Process is more flexible than the flow, however it still has the function of executing a comprehensive control, therefore it can fulfill the need of our Group to develop rapidly.

Each step in the process management decides the quality of the whole flow, while the quality of flow decides the final result of project. In this sense, the process management and control is extremely important. People in Evergrande should show high respect to our enterprise’s culture, in which everyone cares about process and development of our company; everyone makes efforts to improve the efficiency and interest; all in all, everyone should spare no efforts to honor Evergrande as one of the most respectable enterprises, meanwhile the most valuable brand in China.