Operation Advantage

Evergrande is the leader of large masterpiece real estate with standardized operation in China. Through the tightly-knit collectivized management, Evergrande implements the standardized operation to all regional companies nationwide, including such 7 standardizations as management mode, project selection, planning & design, use of materials, bidding, project management and marketing, so as to minimize the business risk resulting from the nationwide expansion and to ensure the control of cost and the creation of competitive products.

According to the standardized project selection, Evergrande implements the uniform selection criteria for the new project, including the project’s location, scale, positioning and status, so as to ensure the conformity of the new project with Evergrande’s development strategy and the future successful development of the project and to minimize the decision risk.

According to the standardized planning & design, Evergrande includes 3 serials of products according to the production positioning and designs more than 150 standard units based on the different regional markets. The standardized planning & design can ensure the accuracy of the project positioning, the reasonability of the planning and design, the implementation of the masterpiece route and the quality of the products. As a result of the standardized planning & design, Evergrande has realized the standardized use of the materials. The standard materials are used for the buildings, landscape gardens, auxiliary facilities and decoration works to effectively speed up the progress of the project construction, ensure the product quality and to reduce the construction cost.

According to the standardized bidding, Evergrande stipulates that, for all large works of the regional companies nationwide, such as main body, decoration, landscape gardens etc., the biddings should be carried out by Evergrande uniformly, and that the tenderers must be the leading enterprises in relevant industries or the top 10 enterprises nationwide. The scale advantage ensures the provision of the quality service by the tenderers with reasonable prices, so the construction cost can be controlled effectively.

According to the standardized project management, Evergrande implements the standardized system for the project management uniformly nationwide. Through the standardized project construction plan template and quality assessment system, Evergrande strictly carries out the planning and management of each link of construction for all projects and the examination of the progress, quality and safe & civilized production for all buildings of the projects. Through the standardized project management, Evergrande strengthens the full control of the progress and quality of the project construction. We specifies the period of from the land acquiring, commencement of construction to sale for the project and launch the pre-sale plan within six months from the date of land purchase. The standardized marketing procedure ensures that we can start to presell the project within six to eight months after purchasing the land so as to achieve the project investment yield rapidly.

As for the standardized marketing, based on the standardized procedure and system together with the actual circumstances of different markets, Evergrande carries out the examination & approval and implementation of the marketing programs and sales prices for all projects nationwide according to Evergrande’s uniform criteria. Meanwhile, Evergrande establishes the strict and uniform standard for the opening quotation for the sale of all projects nationwide, i.e. the sales mode of “landscape garden real-life scenery + present building + fine decoration”, which demonstrates our company strength and product quality with the real-life environment so as to ensure the higher sales price and sales rate.

   
Scale Advantage

Evergrande is one of the real estate enterprises who have the most land reserves in China. At present, Evergrande has a land reserve up to 50 million square meters in China, 57 projects distributed 25 major cities and over 80% located in more than 20 direct-controlled municipalities or provincial cities such as Guangzhou, Tianjin, Chongqing, Shenyang, Chengdu, Wuhan, Nanjing, Xi’an, Changsha, Taiyuan, Kunming, Nanning, Guiyang, Hefei, Zhengzhou, Nanchang, Shijiazhuang etc.. Above cities are basically the regional economic centers, mostly with a population of over 5 million and the economic scale and development speed leading in China.

Most of Evergrande’s projects have a scale of 0.50-2 million square meters, so they are most suitable for the scale development and rolling development and can meet the planning and design conditions for the complete auxiliary facilities and beautiful environment. Evergrande’s projects are generally located in the citys' high quality areas with great appreciation potential and rising demand for the housing, 84% of which are the urban projects of the cities, with beautiful environment, complete auxiliary facilities as well as developed urban transportation and great appreciation potential; while the tourism real estate projects are generally located in such areas as are 30-40 kilometers from the central areas of the large cities, in the vicinity of the express way exits and have the unique and beautiful natural environment, and feature the low land cost and the sustainable development of the land.

   
Product Brand Advantage

Evergrande implements the masterpiece strategy and strictly carries out the masterpiece standard during the whole process. It carries out the tightly-knit collectivized management system inside the group to strictly control the product quality and largely integrates various advantageous resources in cooperating with the most excellent leading enterprises of relevant industries at home and abroad ranging from the planning & design, main construction, landscape garden construction, decoration to the materials and equipment. Evergrande products represent the masterpiece standard of Chinese real estate; Evergrande’s product brand has become the leading brand in Chinese real estate industry.

Relying on the Endsville Chinese product brand, Evergrande has successfully set up the image of high-quality products in each major city so that house buyers identify the added value of Evergrande brand. Under the sluggish real estate market, the Evergrande products still continually and largely sell like hot cakes, with the selling area ranking the third in the country.

   
Product Structure Advantage

Evergrande has a very scientific and reasonable combination of the product types. As for all projects, Evergrande’s three major teams-planning and design research institute, marketing team and regional Evergrande respectively investigate the market independently, and cooperate with the most specialized real estate investigation organizations in China so as to ensure the accurate product positioning and the scientific and reasonable product structure which can be accepted by the market to the full extent.

In terms of Evergrande’s product structure, the medium and top products account for 70%, top products for 10% and the tourism real estate products for 20%. This product structure basically matches with the proportion of the property type demanded on the market. There are plentiful types for the housing products, which can meet the market demand of different areas and levels, not only covering from the home buyers for the first time to the rich owners, but also meeting such purposes as self-occupation, hotel, resort and commerce.

   
Cost Advantage

Evergrande has a systematic cost control system for the project development. Proceeding from the land purchase, product design and bidding for purchase, Evergrande makes every effort to reduce the cost and enhance the competitive advantages.

Evergrande has successfully controlled the land cost. Relying on the leading strategic decision on the land reserve, Evergrande has first entered the cities and regions with low land cost and great appreciation potential. Evergrande Planning and Design Research Institute carefully and effectively controls the construction cost through the standardized and optimized design. Evergrande strictly implements the centralized bidding and tendering. As for various large works related to main body, decoration and landscape gardens etc., Evergrande uniformly arranges bidding and tendering for projects in all parts of China. Evergrande’s scale advantage of the project construction throughout China ensures the provision of the highest-quality service by the tendering leading enterprises at the most reasonable price so as to realize the scale economies for Evergrande's centralized bidding and tendering.

Evergrande has largely reduced the material and equipment prices through the centralized purchase on the condition of quality assurance and effectively lowered the circulation cost, transport cost and storage cost in the process of purchase through the uniform nationwide purchase delivery system to deliver the materials and equipment directly to the construction site.

   
Development Advantage

Evergrande has the powerful rapid development advantage and realizes the rapid development of the projects through the powerful and specialized executive team. In order to realize the objective of the fastest investment cycle, Evergrande requires to launch the pre-sale plan within six months from the date of land purchase. The standardized marketing procedure ensures that we can start to presell the project within six to eight months after purchasing the land. By relying on the tightly-knit collectivized management mode, Evergrande ensures the completion of such works as planning and design, application to the government for construction, organization of construction, supply of raw materials in a short period after acquiring the land so as to commence the construction for the project rapidly. Based on the standardized planning and design, it completes the project positioning and design scheme rapidly and implements them. It integrates the resources through the uniform nationwide bidding and tendering and organizes construction for the new project rapidly so as to ensure the progress of works and the project quality. The standardized system for the works management and quality control is implemented to ensure the project quality. Evergrande implements the standardized mode of opening quotation. At the earlier stage of the project construction, it focuses on the sales environment, such as the central landscape garden, club, sample house etc. and the main building works are relatively slackened so as to minimize the investment before preselling the project.

   
Team Management Advantage

Evergrande has a first-class leadership and management team in China, consisting of employees with average age of 42 and over 16 years of average real estate development and management experience. Among them, there is 1 professor, 5 doctors and 5 masters. The President and top management assigned to each regional company by Evergrande ever held the post of management in many important departments in the Headquarters for many years. Over 90% of Evergrande's management personnel have the bachelor degree or above.

Evergrande has the first-class management mode and has established the three-level management system of the board of directors, group top management and regional company top management by using the advanced international management method based on the practical experience for many years. In terms of the enterprise operation, it adopts the tightly-knit collectivized management mode and the Group HQ carries out the uniform management of the regional companies. Such a serial operation and management modes as the target plan management, performance assessment management etc. have injected the powerful motive force for the enterprise’s rapid and steady development.

Meanwhile, Evergrande sticks to the core value of “good faith, struggle, forward looking and efficiency” all the time and stimulates the employees‘ value with the efficient and forward-looking corporate culture, which together with the advanced business management system and the effective incentive and restraint mechanism forms the upward work atmosphere and the value sense of identity so that the team always keeps the strong cohesive force and creativity.

The experienced and steady management team, tightly-knit collectivized management mode and the advanced corporate culture have greatly enhanced Evergrande’s executive force and risk resistance capability, which allows Evergrande to realize the rapid and steady development.

   
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