Evergrande follows the mode of standardized operation. Through the intenstive collectivized management, the Group HQ implements the standardized operation to all regional companies nationwide, including such 7 standardizations as management mode, project selection, planning & design, use of materials, bidding, engineering management and marketing, so as to minimize the business risk resulting from the nationwide expansion and to ensure the effective control of cost and the creation of high-quality products.
|Standardization of the management mode||Evergrande implements the three-level management system of the board of directors, group top management and regional company top management, and adopts the intensive collectivized management mode and the Group HQ carries out the uniform management of the regional companies.|
|Standardization of project selection||Including location selection, scale definition and project positioning, with the purpose of ensuring the implementation of the compliance of new projects with the development strategy of the Group and minimizing the decision-related risks.|
|Standardization of planning and design||According to the product positioning, products are divided into series as residential industry, commerce, hotel and tourism complex.|
|Standardization of materials used||Standard materials of large volume are used for construction, gardening, supporting facilities and decoration projects, ensuring the product quality and controlling the building cost.|
|Standardization of project bidding||The bidding for all large-scale projects of regional companies will be managed by the Group HQ, with the candidate enterprises required to be a leading one in the industry or an enterprise ranking top 10 in the industry.|
|Standardization of project management||Evergrande implements a standardized engineering management system uniformly within the country. By exercising strict planning management over all construction sites following the standardized engineering construction planning templates and quality assessment system, and conducts progress assessment, quality inspection and construction safety measure assessment for all the buildings of all projects.|
|Standardization of project marketing||The marketing plans and sale prices for all projects are reviewed and approved consistently by the Group HQ before implementation. The project launching criteria are also strictly carried out.|
Evergrande is a real estate enterprise with the largest land reserve in China. The cities where the projects are located in are basically regional economic centers with huge rigid demand for housing, large economic scale and nationally leading development speed.
With the existing total assets amounting to RMB a trillion, and more than 80,000 employees; Sales area, Construction area of, Land reserve has be the national first for many years. by the end of September 2016,it sales 280.58 billion.
Most of the projects of Evergrande are with the scale of 500-2000 thousand square meters. Such projects are ideal for scale development and rolling development, which can meet the planning and design requirements for complete supporting facilities and pleasant environment. Evergrande’s projects are generally located in the cities’ high quality areas with great appreciation potential and rising demand for the housing, Most of which are the urban projects of the cities, with beautiful environment, complete supporting facilities as well as developed urban transportation and great appreciation potential; while the tourist real estate projects are generally located in such areas as are 30-40 kilometers from the central areas of the large cities, in the vicinity of the express way exits and have the unique and beautiful natural environment, and feature the low land cost and the sustainable development of the land.
Evergrande implements high-quality strategy and high-quality standard during the whole process. It carries out the intensive collectivized management system inside the Group to strictly control the product quality and largely integrates various advantageous resources in cooperating with more than 400 excellent leading enterprises of relevant industries at home and abroad ranging from the planning & design, main construction, landscape garden construction, decoration to the materials and equipments. Evergrande products represent the high-quality standard of Chinese real estate; Evergrande’s product brand has become the leading brand in Chinese real estate industry.
Relying on the endsville Chinese product brand, Evergrande has successfully set up the image of high-quality products in each major city where house buyers identify with the added value of Evergrande brand. Therefore, under the sluggish real estate market, Evergrande products still continually and largely sell like hot cakes, with the sale performance leading in the country.
Evergrande has a very scientific and reasonable combination of the product types. As for all projects, Evergrande’s three major teams - planning and design research institute, marketing team and regional company - respectively investigate the market independently, and cooperate with the most specialized real estate investigation organizations in China, so as to ensure the accurate product positioning and the scientific and reasonable product structure which can be accepted by the market to the full extent. 。
Evergrande’s product positioning is the rigid demand of the first house-purchasers and the self-occupying ordinary people. The product structure is reasonable: the medium-end products and the medium-to-high-end products account for 70%, the tourist real estate products for 15% and the high-end products for 15%. This product structure basically matches with the proportion of the property types demanded by the ordinary people, meeting the market demand of different areas and levels.
Evergrande has a systematic cost control system for the project development. Proceeding from the land purchase, product design and bidding for purchase, Evergrande makes every effort to reduce the cost and enhance the competitive advantages.
Evergrande has successfully controlled the land cost. Relying on the leading strategic decision on the land reserve, Evergrande has first entered the cities and regions with low land cost and great appreciation potential. Evergrande Planning and Design Research Institute carefully and effectively controls the construction cost through the standardized and optimized design. Evergrande strictly implements the centralized bidding and tendering. As for various large works related to main body, decoration and landscape gardens etc., Evergrande uniformly arranges bidding and tendering for projects in all parts of China. Evergrande’s scale advantage of the project construction throughout China ensures the provision of the highest-quality service by the tendering leading enterprises at the most reasonable price so as to realize the scale economies for Evergrande’s centralized bidding and tendering.
Evergrande has largely reduced the material and equipment prices through the centralized purchase on the condition of quality assurance and effectively lowered the circulation cost, transport cost and storage cost in the process of purchase through the uniform nationwide purchase delivery system to deliver the materials and equipment directly to the construction site.
Development Advantage of the projects through the powerful and specialized executive team. In order to realize the objective of the shortest investment cycle, Evergrande requires to launch the pre-sale plan within six months from the date of land purchase. The standardized marketing procedure ensures that we can start to presell the project within six to eight months after purchasing the land. By relying on the intensive collectivized management mode, Evergrande ensures the completion of such works as planning and design, application to the government for construction, organization of construction, supply of raw materials in a short period after acquiring the land, so as to commence the construction for the project rapidly. Based on the standardized planning and design, it completes the project positioning and design scheme rapidly and implements them. It integrates the resources through the uniform nationwide bidding and tendering and organizes construction for the new project rapidly, so as to ensure the progress of works and the project quality. The standardized system for the engineering management and quality control is implemented to ensure the project quality. Evergrande implements the standardized mode of opening quotation to achieve the target of fast sales.
Evergrande has a first-rate leadership and management team in China, consisting of employees with average age of 46 and over 22 years of average real estate development and management experience. Among them, there is 1 Professor of management and doctorial tutor, 6 doctors and 12 masters. Over 95% of Evergrande’s engineering technology and management personnel have the bachelor degree or above.
Evergrande has the first-rate management mode and has established the three-level management system of the board of directors, group top management and regional company top management by using the advanced international management method based on the practical experience for many years. In terms of the enterprise operation, it adopts the intensive collectivized management mode and the Group HQ carries out the uniform management of the regional companies. Such a serial operation and management modes as the target plan management, performance assessment management etc. have injected the powerful motive force for the enterprise’s rapid and steady development.
Meanwhile, Evergrande sticks to the core value of “inheritance, breakthrough, value and harmony” all the time, and stimulates the employees’ value with the efficient and forward-looking corporate culture, which together with the advanced business management system and the effective incentive and restraint mechanism forms the upward work atmosphere and the value sense of identity, so that the team always keeps the strong cohesive force and creativity.
The experienced and steady management team, intensive collectivized management mode and the advanced corporate culture have greatly enhanced Evergrande’s executive force and risk resistance capability, which allows Evergrande to realize the rapid and steady development.