Starting from the establishment of Evergrande, various moderate and scientific development strategies were made for different historic stages. Under the grand strategic frame, we insist on supervising duty performance of all departments and even all individual staff members, applying rewards and penalties as levers and systems as standards. Hence, Evergrande’s system of rewards and penalties has become an important part of Evergrande corporate culture and an important lever to guide and curb employees’ behavior.

The larger a company is, the more difficult its management will be. Therefore, the principles for shooting problems should be more effective, the system of rewards and penalties should be more clearly established, and the sense of crisis and responsibility should be enhanced with more emphasis.

In recent years, as Evergrande’s nationwide development strategy was realized step by step, the Group management intensified the effect of rewards and penalties in respect to engineering development, financing, marketing, etc. Since August, 2007, the Board of Directors of the Group has organized several extensive evaluations on all local companies across the country, with good duty-performers rewarded and ill duty-performers penalized. Such evaluations proved effective and exhibited periodic achievements of planning and management. Therefore, we have full reasons for that the system of rewards and penalties be carried on.