Even in the strictest policy environment in 2010, Evergrande, a leading real estate enterprise of China, still easily made a breakthrough with the full-year sales amount exceeding 50 billion yuan. Evergrande which has reached the scale of 50 billion yuan is still like a huge elephant that is running fast. According to the current growth rate, the sales amount of Evergrande in the following two years will exceed 100 billion yuan. What has Evergrande done for entering the first “legion” of 50 billion yuan? On its way to achieve the target of 100 billion yuan, how will Evergrande continue its own transmutation? 

Layout of real estate adopting the modern I-go thought

The mark of dividing line between the modern I-go and ancient I-go starts from the reform of overall layout, which changes the way of gaining victory through fight and kill once an I-go stone is put on the goban.
        The forward-looking layout of Evergrande is similar to the thought of modern I-go from the very beginning. The distribution of stones is even, with the effect of each stone taken into consideration and the result of the whole game focused on.
        Evergrande started to develop projects in as early as 2004 in the second- and third-tier cities, especially in the high-growth areas with high potential for value appreciation, and has shown its strategic foresight in the future leap-forward development. So far, Evergrande has owned more than 100 projects which are distributed in more than 50 major cities, 89% of which are provincial capitals, and has become the developer which develops projects in the largest number of provincial capitals. In the future, this figure will increase by leaps and bounds.
        Besides the strategy of layout in the second- and third-tier cities, the fact that Evergrande can keep stable and fast development benefits from its “scattered land reserve” to a large extent. Like the modern I-go layout, the land reserve is distributed in dozens of cities in the country including the second- and third-tier cities as the key points. The density of the layout is appropriate and the space structure and the order of stone putting are emphasized. In the first half of 2010, the areas of high proportion of contracted sales amount include the second-tier cities in Southwest, Northeast, and Central China. In case the policies are changed thus causing sales restriction or the increase of down payments in some cities, Evergrande can get fast and effective supplement from other cities.
        On this basis, Evergrande is also gradually expanding the product lines. It not only develops some mid- and high-end products but also appropriately develops tourism real estate and commercial real estate. Nowadays, the regional distribution of balanced contracted sales amount and the structure of varied products have further strengthened Evergrande’s ability to resist market risks.
        Evergrande has completed the basic layout in recent years and it is now the right time for it to expand the performance. At present, no matter in the aspects of land reserve, area of projects under construction, or the sales area, Evergrande has become an enterprise of the largest scale in the real estate industry of China and really a member of the first echelon of real estate enterprises in China.

Standardization guarantees the executive ability 

Louis Gerstner, the former Chairman and CEO of IBM, holds the opinion that it is very important for a company to have a large scale, because the scale is a lever. With the scale layout of depth and breadth, a company can hold more investment and undertake higher risks. This is not the question on whether an elephant can overcome an ant, but a question on whether an elephant can dance.
        From 30.3 billion yuan to 50 billion yuan, how will the elephant Evergrande dance? Professional insiders hold the opinion that Evergrande has built the skeleton support for an enterprise of 50-billion-yuan level with efficiency and measures. Evergrande’s commercial mode is simple. But Evergrande is exactly the master in the market orientation of Chinese real estate industry in these years. 
        The internal and external resources need to be highly integrated. Like a precise machine, Evergrande effectively integrates the major resources through the standardization of external resources and the intensification of internal resources. Nowadays, Evergrande has already formed a standardized operation mode in its branch companies throughout the country through the compact collectivized management by the headquarters. It is learned that Evergrande has implemented the standardized operation in its branch companies throughout the country, including the standardization in seven aspects, namely, the management mode, project selection, planning and design, use of materials, public bidding invitation, project management, and marketing, which has reduced the business risks brought by expansion throughout the country to the largest extent and has guaranteed the cost control and the construction of high-quality products. This intensified central management mode is Evergrande’s own enterprise management mode developed by Hui Ka Yan according to his rich management experience of many years in the long-term practice by borrowing ideas from the modern operation philosophy and management experience.

The target of 100 billion yuan

"Our high-speed development is decided by our operation mode. We have always been adjusting our breath all the time." Without doubt, Evergrande has already become a pilot in real estate enterprises of China. On its way of high growth, the target of 100 billion yuan of sales amount is not far away and the route to reach the target is clearer and clearer. Besides the large-scale development of residences which Evergrande has been carrying out with high competence, Evergrande also spare no efforts in the innovation of the commercial mode.  
        If we say that Evergrande’s acquisition of Kaisa Plaza on August 26, 2010 was an active rehearsal for its involvement into commercial real estate, the opening-up of Chongqing Evergrande Hotel on October 23 was even regarded by the management of Evergrande as the prelude of Evergrande’s investment in tourism complex. Evergrande is looking for a sustainable development road for its commercial mode. 
        Evergrande’s route to the target of 100 billion yuan is becoming clearer and clearer. Hui Ka Yan, Chairman of the Board of Directors of Evergrande Real Estate Group, clearly put forward in the working conference at the end of 2010 that Evergrande would firmly implement the scale strategy, brand strategy, human resources strategy, culture strategy, management strategy, and internationalization strategy. Guided by the six strategies, Evergrande would continue to strength the development of new projects, sales of projects, project management, financing operation, and training of human resources.