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10
Glorious Property
Annual Report 2011
Chairman’s Statement
(Continued)
In China, the Central Government will continue to enforce stringent measures on the property
market. The regulatory policies such as purchase restriction and loan limitation are unlikely to
be significantly changed. Although some austerity policies on the property market from certain
areas and segments are expected to be eased, the property developers will still have to face
significant challenges from the market.
Without loosening the macro-control policy on the property market, property developers will
be active to adopt a price reduction strategy so as to meet the demand. Thus the property price
will resume to fall to a reasonable level and the transaction volume will gradually return from
the lowest ebb. To meet the changes of the market, developers will adopt various strategies
in 2012 to ensure the security of cash flow. The Group expects that the property market will
undergo a further adjustment and the industry consolidation will be hastened accordingly
while the market concentration rate will further rise.
MARKET STRATEGY
The Group will closely follow the market trend and adopt flexible sales and pricing strategies
to speed up sales of current projects and cash inflows. The Group will adhere to its strategy of
penetrating deeper into the markets in its existing cities and deploying more resources to cities
with good sales performance to make its brand name bigger and stronger.
INVESTMENT STRATEGY
The Group continues to adhere to its prudent investment strategy in respect to new land
acquisition in line with cash flow from sales and sound financial requirements. While it is
important for the Group to maintain a total land bank at a reasonable level, more emphasis is
to be attached on the optimisation of the land bank structure in each local city, to achieve a
sustainable level in both total land bank for the Group and land resources in every city.
OPERATIONAL STRATEGY
The Group will hold on to its business development of operating prudently and hasten sales
and cash inflows for operations. The Group will set up an effective and disciplined capital
budgeting system in response to market changes. This year the Group will cut new construction
area appropriately and effectively control the capital expenditures and expenses. Meanwhile,
the Group will continue to promote the standardisation of product and costing of the Group.