The real estate market under current macro-control is much as it was in the 1990s. In the early 1990s, the company put forth a net profit target of up to 25%, which was recognized by the market and led to average annual growth of 70% while its rivals struggled. In 1998, the company became the leader among listed real estate companies.

In 2001, the company began focusing completely on the real estate, adjusting its strategies, insiders said, according to three core values: turning away from various business operations to a singular focus on real estate, from varied real estate operations to a focus on residential properties, and from operations in several cities to focus solely on the Beijing, Shenzhen, Shanghai and Tianjin markets, signaling its ambition to become the industry leader.

In 2007, the company achieved total sales of RMB 52.36 bln, a 146.6% YOY increase, total revenue of RMB 35.53 bln, a 98.27% YOY increase, and total profit of RMB 7.64 bln, a 122.5% YOY increase, which together left rivals trailing far behind.

Source: Securities Daily

Date: 20 Aug 2008

CN01/NW/DM/BT/MM