Evergrande has formulated eight major strategic decisions over the past 20 years and has formed a scientific, forward-looking, and effective development model. It constantly creates significant growth and miracles, and has contributed to serving ordinary people and promoting economic and social development.
First major strategic decision
The first staff assembly was convened in the Xiqiao Mountain on March 1st 1997, which defined Evergrande mission of "building the brand with quality and establishing the enterprise with integrity", Evergrande spirit of "hard work, unselfish contribution, diligent fighting and aggressive exploration”and Evergrande style of "meticulous planning, strict execution, efficient working", forming unique corporate culture and becoming the magic weapon for the rapid and healthy development of the Company.
Second major strategic decision
In 2004, the Company made a major strategic decision to build fine products, continuously realized the upgrading of the products, ensured the high quality, cost-effective people's wellbeing housing products covering the whole country, Evergrande brand deeply rooted in people's minds, and laid the foundation for the development of the whole country.
Third major strategic decision
In 2006, the Company started its nationwide layout and international development, rapidly expanding from Guangzhou to more than 20 major cities in China, and meanwhile, successfully introducing international investors like Temasek, Deutsche Bank and Merrill Lynch.
Fourth major strategic decision
In 2007, the Company made major decision and was successfully listed on the Hong Kong main board on November 5, 2009, providing strong impetus to the Company's development.
Fifth major strategic decision
In 2013, Board chairman Hui Ka Yan proposed "Great Wisdom, Great Strategy, Great Development, Great Victory" at the annual working meeting and formulated the goal that "By 2020, sales 550 billion will be achieved, land reserves exceed 300 million square meters, and employment exceeded 2 million." This goal has been achieved three years ahead of schedule.
Sixth major strategic decision
In 2017,the Company launched strategic transformation. In the development model, has changed from "Scale Type" to "Scale + Benefit Type"; in management model, changed from "Three Highs and One Low" (high liabilities, high leverage, high turnovers and low costs) to "Three Lows and One High" (low liabilities, low leverage, low costs and high turnovers). In 2017, the Company realized core business profit of RMB 40.51 billion, increased by 94.7% on a year-on-year basis, the net profit of 37.05 billion, increased by 110.3% on a year-on-year basis, the turnover of RMB 311.02 billion, increased by 47.1% on a year-on-year basis, total assets of RMB 1,761.8 billion, increased by 30.4% on a year-on-year basis, and cash balance of RMB 287.7 billion, multiple core data are the first in the industry. At the same time, the net-liability ratio fell nearly 60%. The effect of strategic transformation is remarkable.
Seventh major strategic decision
In 2018, the Company began to implement major strategic decision of "New Evergrande, New Starting Point, New Strategy and New Blueprint". It unswervingly implemented the development pattern of "Scale + Benefit Type" as well as the business model of "Three Lows and One High" including low liabilities, low leverage, low costs and high turnovers, and positively explored the high-tech industry based on the industrial layout, gradually forming the industrial pattern with people's livelihood real estate as the foundation, with cultural tourism and health preservation as its two wings and with high-tech industry as the leading. By the end of 2020, Evergrande will realize total assets of over RMB 3 trillion, annual sales of RMB 800 billion and annual profit and taxes of RMB 150 billion, becoming one of the world top 100 companies.
Eighth major strategic decision
In 2020, Evergrande comprehensively implements the latest development strategy of “guaranteeing high growth, conducting scale control, and reducing enterprise liabilities”. “Guaranteeing high growth” means to bring about rapid sales growth so that the sales volume can reach RMB 800 billion in 2020, and RMB 1 trillion by 2022; “Conducting scale control” is to strictly control the land reserves and achieve negative growth. In the next three years, the land area will fall by about 30 million square meters every year, and by 2022 it will be reduced to about 200 million square meters; “reducing enterprise liabilities” demands that the liability with interest should be reduced by RMB 150 billion each year, and by 2022 the total liabilities will be reduced to below RMB 400 billion.
