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Since its establishment, Evergrande has been adhering to the people’s livelihood oriented development concept to serve the country by developing industry, creating high-cost-effectiveness high-quality residential buildings which the ordinary people in China can afford with efforts.
   Guided by such concept, Evergrande has divided the enterprise strategy into three development stages, and has gradually formed six strategies, i.e. scale strategy, brand strategy, management strategy, culture strategy, talent strategy and internationalization strategy, as the enterprise core competitiveness to constantly create leap-forward development miracles of Evergrande, making outstanding contributions to enhancing the habitation value and promoting the urban construction and the social sustainable development.

Strategic phase of “win with scale”

In 1996, Evergrande implemented the development strategy of "win with scale" based on the industrial competition, target market, capital position and other objective factors, with "small area and low price" to ensure the rapid product sales, to accelerate the capital turnover and to expand the enterprise scale. Meanwhile, Evergrande established the enterprise spirits of "pioneering with arduous efforts, struggling hard, contributing selflessly and forging ahead", the work styles of "planning meticulously, implementing strictly and acting efficiently" and the enterprise tenets of "building brand with quality and creating great undertaking with integrity".

After the rapid development for a decade, by 2006, Evergrande developed from only one project in Guangzhou to over ten projects in Guangdong simultaneously, and had the number of employees from less than 10 to 3000, ranking Top 20 in Chinese real estate.


strategic phase of “scale + brand”

From 2006, Chinese real estate market became mature gradually, and the competition was increasingly fierce. Evergrande considered the situation, implemented the development strategy of "scale + brand", and started to expand from Guangzhou to the whole country. To ensure the product quality, to control the cost, and to satisfy the needs for rapid development, with respect to the management, Evergrande determined the intensive collectivized management mode; with respect to the operation, Evergrande adopted the standardized operation mode of unified planning, unified tendering, unified purchasing and unified distribution; with respect to the product positioning, Evergrande established the livelihood real estate strategy of refined decoration for building delivery. On November 5, 2009, Evergrande was successfully listed in Hong Kong.By the end of 2013, Evergrande had the strategic layout of over 300 real estate projects in over 150 major cities throughout the country, had more than 48,000 employees, and achieved the annual sales volume of more than RMB 100 billion for the first time, with many core indicators ranking No.1 in the industry.

Strategic development phase #3 (2014- now): Strategic Phase of *diversification + scale + brand*

In2014, Evergrande, based on the long-term consideration, started to implementthe development strategy of "diversification + scale + brand" tofurther consolidate the main business – real estate, and to successively expandthe finance, Internet, health, tourism, culture andsports. In 2015, Evergrandeachieved the real estate sales volume of RMB 201.3 billion, and successfullycompleted the diversified industrial layout.

In July 2016, the Company wasofficially renamed "China Evergrande Group" . At present, Evergrandehas the total assets over one trillion, the annual sales scale of more than RMB300 billion and has more than 80,000 employees. ranking TOP 500 in the worldand becoming the world’s largest realestate enterprise.

*First-rate scale* is thefoundation of Evergrande*s strategy of *three first-rates*. Before 2006,Evergrande rooted in Guangdong and expanded its scale rapidly. Since 2006, withthe national development strategy for high-speed expansion, it has rapidlyachieved the nationwide layout of projects and standardized operation ofproducts, thus gaining the blow-out performance growth. An average over 100multiple was seen in various indicators of Evergrande, such as businessrevenue, sales, net profit, construction area in progress and area of landreserve, from 2006 when its national expansion strategy was first implementedto the end of 2015. Now, Evergrande had more than 500 real estate projects inmore than 180 cities across China, with total assets over one trillion.

*First-rate brand* is the core ofEvergrande*s strategy of *three first-rates*. In terms of brand strategy,Evergrande is persistent to implement the strategy of high-quality goods andfollow the strategic concept of *building Evergrande*s high-quality goods andshaping the international brand*, and has formulated more than 6,000*high-quality project standards* in the full process of real estate developmentlike project planning

and design, engineeringconstruction, supporting facilities for landscape environment and decorationmaterials and equipment and established a stable strategic alliance with theleading enterprises in more than 810 related industries at home and abroad,thereby realizing the great leap of product quality. so as to achieve the greatstride of product quality. Eevergrande has a brand value as high as39.26billion yuan, having been the highest-value real estate company brand in Chinafor seven consecutive years.

‘first-rates*. In respect with the talent strategy,Evergrande reserved a large number of excellent talents through high-standardand moderately forward-looking talent introduction mechanism as well as thescientific and perfect interior cultivation mechanism before 2004 fornationwide expansion. Evergrande gives full play to the salary guarantee and performanceassessment to achieve the optimized configuration of talent structure. Alarge-scale employee team with high quality and strong executive capacity hasbecome not only the strong guarantee for

Evergrande's sustainable andsteady development, but also the competitive advantage and strength Evergrandeis the most proud of.

In terms of management strategy,Evergrande has formed a feasible, advanced and unique intensive groupmanagement mode that meets the current development situation of the Company asa super-large enterprise group in China and adapts to the development directionof becoming a worldclass enterprise with international competitiveness.Underthis mode, Evergrande has created seven standardized operation systems forproject

selection, planning and design,and engineering management, etc. through the standardized operation, so as toensure the regional companies do not take a roundabout course, ensure theregional companies to reduce the operation cost, and ensure the high-qualitystrategy of the Group is carried out firmly. Meanwhile, the Company has formedscientific management systems such as target plan management and flexibility management

in the management atmosphere, andhas formed the management mechanism of *strict management and clear distinctionbetween reward and penalty*, which jointly establish a scientific and completemodernized management system.

Up to now, Evergrande hasdeveloped the institutional culture, optimized the behavior culture andimproved the material culture with creating the spirit culture as the guidance,so as to form the unique Evergrande

enterprise culture. Just at thebeginning of its establishment, the Company has formed the enterprise spiritsof *making great efforts, unselfish devotion, diligence, opening up and beingenterprising*, the enterprise

styles of *elaborate planning,vigorous implementation and efficient working* as well as the enterprisemissions of *building the brand with quality and establishing the enterprisewith integrity*. Guided by these advanced enterprise culture strategies,Evergrande has formed good working atmosphere from top to bottom, and makesjoint efforts to carry forward the Evergrande*s spirits, styles and missionspractically, overcome all the insurmountable difficulties, and get the best ofall the insurmountable challenges. Such culture strategies have become the inherentdriving force for Evergrande*s strong executive capacity and repeated miracles.

In 2006, Evergrande put forwardthe fourth *Three-year Plan* of *marching towards the world with leap-forwarddevelopment*, and began to implement the enterprise strategies at the altitudeof an internationalized enterprise.From 2006 to 2008, Evergrande cumulativelyraised more than USD 1 billion in the international capital market, repeatedlycreating the world records and ranking among the international well-knownenterprises at one stroke. Evergrande was listed in HK in 2009 and created anew record for financing amount in global capital market for several timesafter its stock exchange listing. A fund raising of USD 2.3 billion ininternational capital market allowed Evergrande to create another record in2013. The same year, Evergrande made and entered into an

agreement with globally topuniversity Harvard University for co-establishment of Harvard & EvergrandeImmune Disease Study Center, Harvard & Evergrande Mathematical Sciences andApplication Center and Harvard & Evergrande Green Building Research Center.Additionally, a green building research base was founded by Evergrande incollaboration with Harvard University and Tsinghua University. On October 21,2015, Tsinghua University, BRE and Eevergrande signed the "Sino-BritishSustainable Urbanization Research Platform Agreement",and then Evergrandeto take another step towards its strategy of internationalization.