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42
Glorious Property
Annual Report 2011
Management Discussion and Analysis -
Future Outlook
(Continued)
Future Outlook (Continued)
INVESTMENT STRATEGY
The Group strikes to adhere to its prudent investment strategy of “balancing outflows and inflows.” The Group will
reasonably and prudently increase certain high-quality land bank based on the cash inflows from sales and prudent
financial policy requirement. The focus of the Group is to explore opportunities in existing cities and regions with strong
solid demand. While maintaining the land bank at a reasonable level, the Group is seeking to further optimise its land
portfolio in regional and city levels so as to lay a solid foundation for the mid and long-term development.
OPERATIONAL STRATEGY
The Group will hold on to its development philosophy of operating prudently to hasten sales and cash inflow for new
operations. It will trim down construction area appropriately depending on the market changes so as to effectively
control the expenditures and to ensure the security of operation and stable development. Furthermore, the Group will
optimise management in the aspects of refinement, standardisation and informatisation to strengthen the efforts on costs
and quality control. The Group will also stick to the steady development of commercial property in core urban areas
of the first- and second-tier cities and concentrate on enhancing the development and operation management of its
current commercial projects and gradually improve the proportion of the Group’s income from the operative investment
property.
FINANCIAL STRATEGY
The Group will continue to adhere to its prudent financial policy and adopt a more diversified financing structure
through multiple platforms and channels to ensure that the funding required for the rapid development of its businesses
will be met while total borrowings will be controlled at a reasonable level. Meanwhile, the Group will continue to
strengthen its capital structure by reducing the proportion of short-term loan. The Group will maintain its refined cash
flow management to effectively control financial risks.