Table of contents

A.. Company Overview………………………………………

 

B. Current marketing situation……………………………..

(a).Market overview………………………………………

(b). Product/service overview………………………………

 

C. Environmental analysis………………………………….

...

Table of contents

A.. Company Overview………………………………………

 

B. Current marketing situation……………………………..

(a).Market overview………………………………………

(b). Product/service overview………………………………

 

C. Environmental analysis………………………………….

(a).Macroenvironmental factors(stepp analysis)…………

(b). Microenvironmental factors(SWOT analysis)………

(c). Competitive strategy……………………………………

 

D. Financial Forecasts and Budgets………………………

 

E. Controls…………………………………………………

 

F. Appendixes…………………………………………….

 

G. Bibliography………………………………………………

 

 

A. Company Overview

Sino-Ocean Land was set up in 1993, and listed on the main board of The Stock Exchange of Hong Kong on 28 September 2007 (Stock Code 03377). The company is ranked among the 10 largest listed property companies in Hong Kong.

The company’s business includes medium and high end residences, high class offices, retail properties, the development of serviced apartments, the sale of properties and related businesses, estate management, hotels and clubhouse management.

The company is based in Beijing. Armed with multi-region and diversified development projects and investment property portfolios. With its quality property projects and services, Sino-Ocean Land had clearly and steadfastly built its own brand.

Since the company was formed, it has planted its roots in the Beijing market. At present, it has 19 projects in Beijing at different phases of development. Most of them are situated in Chang’an Street and its extensions, the periphery of the various ring highways, major business districts. These are premium sites or areas served by convenient transport networks. The brand is very well known in Beijing and immensely popular.                                                              Sino-Ocean Land has rich experience and enjoy leadership position in a diverse range of real estate products, embracing high-end residences, premium offices, retail properties, serviced apartments and hotels. We are in constant pursuit of an optimum balance between property development and investment, characterized by a flexible profit model and a portfolio of investment properties with high growth potentials.

B. Current marketing situation

(a). Market overview

From the investigation of the scope of the investigation, 20 residents live in the main building, 87.7 percent of families without housing for the elevator-style buildings, only 3.7 percent of families living in the elevator of goods, there are 8 .2% Live in the cottage, while a small part in a bathroom or kitchen to share the state share.

Data show that 25-34-year-old buyers who account for 36% of the population, the top spot, while the proportion of people aged 35-44 to 20.3 percent, ranking the second. The overall population in order to purchase more than secondary school education for the mainstream, for more than half of full-time workers, focusing on the distribution of trade, manufacturing, government agencies and educational and cultural fields so as to manufacturing workers, mid-level technicians, business / service industry staff, mid-level companies Most managers, other industries have supplemented by a monthly salary in the range of 1000-2000 yuan as the

main buyers.

At present, the Chinese family structure to house three or four-member family-oriented, plans to purchase a majority position in the commercial housing and affordable housing, respectively accounting for 42.7% of the proportion of pre-and 39.2 percent; advance in the area of 70 -- Ranging between 150 square meters to 80 -100 square meters of the highest demand.The main pre-housing families on income between 1000-4000 yuan.

According to the survey, prepared five years, accounting for the purchase of the city to investigate the city's overall 21.9 percent, to affordable housing and housing-based, pre 70-150 square meters in size, affordable price per square meter, 1000 -2000 Yuan as the mainstay, supplemented by 500-1,000 yuan per square meter and the price of 2000-3000 yuan.

(b). Product/service overview

The company’s business includes medium and high end residences, high class offices, retail properties, the development of serviced apartments, the sale of properties and related businesses, estate management, hotels and clubhouse management.For example, medium and high end residences,like a residence in Beijing.(Appendix 1)

In the party of guest ideas ,adoption of high-quality property management and customer service system to achieve the increase the value of real estate, real estate is always going to pursue. Adhering to the "common growth, accompanied by happiness," the concept of customer service, offshore real estate in 2005 to set up a consumer club "will be going."  "Ocean" belonging to the non-profit membership organizations, all members will be more than 20,000 people, members of Beijing is expected to more than 10,000 people across the country is very influential and characteristics of home buyers club.  "Ocean" to establish the purpose is: to enhance the quality of services, enabling customers to enjoy more free series of professional consultancy services and other services to life!.

C. Environmental analysis

(a). Macroenvironmental factors(stepp analysis)

1. Economic agent

The economic agent the macro economic condition which and the income level two kind of factors locates including the market, they form the market the economic environment. The real estate market always exists in certain macro economic condition, the economic situation immediate influence real estate's development, the economic expansion time, the real estate demand is exuberant, the real estate market is noisy; But the economical murky time, the real estate market is worn out, is naturally the entrance is desolate. Our country national economy since the party 15 have been big, continues the steady progression by the yearly average 9% increasing speed, 15 times to 2010, estimated that the national economy increases the speed to be able to achieve 12%. Our country's urbanized level from 28% will also rise to 35%, increases cities 230, needs the housing 1,200,000,000 square meters, along with the economical development, the real estate has a broader market in the 21st century, our country opening to the outside world in unceasingly thorough, the overseas abundant fund to get rid of our country financial crisis's puzzle, will invest our country real estate industry continuously, the party 16 loudly proposed that the comprehensive construction affluent society, means the economy will soar, the enterprise reform step will speed up, in near three years the performance of enterprises will have the change for the better, will account for the urban population nearly 70% enterprise staff's wage gain as real estate market's buyer main body to have the improvement. Because of this, the real estate enterprise should open the market broadly at the same time, yields profit the sale, stimulates the storage quantity real estate; On the other hand should begin to prepare to greet the new round real estate development high tide the arrival, seizes the market on own initiative. The income in the market the performance is the actual purchasing power, it constitutes the market base element, because of market absorption capacity's size, is decided in the final analysis by the consumer purchasing power size. Therefore, the real estate enterprise needs to analyze the good market development prospect, carries on the very good market localization, the optimization product mix, manages the multi-specifications, the different scale commercial housing, adapts the market development to need with to meet the different consumption level need.

2. Political factor

The political factor is refers to international, domestic “the climate”, the national political situation as well as the national open degree and the policy continuity, it forms the market the political context. “climate” different, the real estate trend of development is different. The world military conflict, the political opposition will only hinder various countries' economy the development, the real estate industry development suffers setbacks without doubt; Otherwise, the international situation is very good, the domestic political situation is stable, the real estate development will certainly to be at the benign condition. Because our country once “left” the influence, does not pay great attention to develop the productive forces, the national economy approaches the collapse nearly the edge, the real estate dies general rather lonesome; After party's 11 Third Session, take the economic development as the center, carries on the bold reform to the real estate, the real estate industry obtains the new life. Now, on the one hand peace with developed the world subject, on the other hand our country has strengthened the construction to have the Chinese characteristic socialism standpoint, insisted “"The Three Represents",” and joined WTO smoothly, good international, domestic “the climate” presented in front of the real estate enterprise. Therefore, the real estate enterprise must strengthen the confidence, pays special attention to the management work earnestly, is far from the long-range plan, focuses the market development.

3. Population factor

The population factor decision real estate market's scale and the trend of development, it has the strong restriction strength to the real estate development. Population condition. The real estate is provides the people to perch the housing, the work, the study, the life, entertainment's place. At present, our country population 1,300,000,000, account for the world total population 22%. Our country is the biggest housing consumption market, this to the real estate enterprise is the very good opportunity. In addition, in population scale also immediate influence region commercial prosperous and industry development, thus immediate influence trade and industry to real estate demand. According to the population condition and the national stipulation's average per person housing goal, the real estate enterprise should grasp the investment development scale, pays special attention to the new home development, take the housing development as the center of gravity, gives dual attention to the non-housing commercial housing development, satisfies the urban population housing the need, meanwhile must open “the newly-wed apartment” appropriately, “the aristocrat building” and so on projects, builds the ideal family for the new wedding date youth, builds for the rich person expensive men builds room of the gold. The population flows to the city from the countryside. Along with the social division of labor and the commodity economy development, the urbanization of the population level is enhancing rapidly, the countryside assumes the geometric series to the urban mobile population to increase progressively, causes the population to be more and more centralized to the city. But the agricultural class needs to occupy the place which and to start an undertaking similarly, this place is a real estate. According to the pertinent data reported that at present the countryside has reached 1 to the urban mobile population hundred million, approximately is equal in the urban population (refers to has resident who persevering occupies urban registered permanent address) 1/4, the countryside will change urban from now on the population every year also the average by 15,000,000 quantities in the increasing, and the flowing form will change the family by the individual, the housing way by will temporarily reside becomes settles down. The above showing real estate enterprise when subdivides the market the market potential which and the capacity after the countryside the noticeable population flows to city forms, is provides the agricultural class population housing and seeks industry the space, the suitable multi-developer housing, the meager profit room, should not develop “the shantytown” again, by certainly future trouble. Family structure change. The family is society's smallest unit, the formulation real estate market marketing strategy has no alternative but to analyze the family structure the factor. An area under the total population invariable condition, the average family population are more, needs the housing number of units to be less; Otherwise, the average family population are less, then needs the housing number of units to be more. The modern family gradually in develops to two person of worlds or the three-person family direction, such development will increase the housing number of units obviously, simultaneously our country tradition's family happiness and the population aging, the family miniaturization and between the old age parents support and the attendance has the contradiction, they namely must conform with youth husbands and wives will live independently “the minute” the desire to the housing request, must request will have “gathers” the function for various reasons to a certain extent. Thus, the real estate enterprise should according to the family miniaturization tendency and “the minute”, “gathers” the request, on the one hand has the plan to increase the standard anteroom the development quantity, realizes the family miniaturization the request which increases to the housing quantity; On the other hand the plan design tallies “the minute”, “to gather” the desire suitable housing, like construction certain amount's many set of housing, the multiple housing and so on, enable the young husbands and wives “the minute” to have with the parents “gather”, “gather” have “the minute”.

4. Policies and regulations and profits and taxes factor

The policies and regulations and the profits and taxes factor are situated between the political factor and the economic agent environmental factor, it is the restriction and the guidance real estate development important outside forces. The policy and the laws and regulations are the national macroeconomic regulation and control market important machines, has to the market main body's function compulsory, national policy releasing and the laws and regulations formulation, has the influence inevitably to the real estate market, possibly brings the new market vitality to the enterprise, also possibly brings the new threat. Therefore, the real estate enterprise must enhance the comprehension faculty and the discrimination unceasingly facing the market, friendliness current political situation, and strengthens to the real estate related policy, the laws and regulations research, establishes own management principle under the legal permission, in lawful operation's foundation, seeks for the development opportunity, gets rid of threat which the policy, the laws and regulations change bring. The real estate cannot leave the financial industry the support, because the real estate in a big way has the value, to take fund many characteristics. In the ordinary circumstances, the real estate enterprise's operation fund more than 50% comes from the bank loan, such interest rate has then become the influence real estate performance of enterprises susceptibility factor. The bank saves the rate on loan to be low, the business capital cost is low, will stimulate to the investment in real estates; But the credit squeeze, the interest rate are high, the investor relative profit are few, will suppress the real estate the development. Moreover, will save the rate on loan lowly also to stimulate the housing the expense, because the deposit interest rate will be low, the deposit allowance will be lower than the house rent, the resident thinks buying homes to be worthwhile, buying homes warm high; The rate on loan is low, resident individual may obtain low interest the preferential benefit mortgage loan to use in purchasing homes, purchases homes wants to strengthen. Otherwise, saves the rate on loan to be high, the fund Bank, the interest return is high, is not advantageous stimulates the resident to buy homes; This time if the resident loans purchases homes, it repays the pressure to be also big. In saves under the situation which the rate on loan declines repeatedly, the real estate enterprise may obtain the ideal investment repayment, but should the special attention harmonious bank relations, the positive war chest, embarks from own actual and the market conditions, carries on the investment in real estates development safely. The taxes and fees may straighten out and adjust national, the enterprise and individual three between benefit relation of distribution, is the policies and regulations concrete implementation, has the guidance and the limit dual function to the real estate industry development. The taxes and fees are reasonable, may play the proper control action to the real estate market; Otherwise, will only cause the commercial housing price the unreasonable rise, the aggravation real estate enterprise and home-buyer's burden, will reduce the real estate performance of enterprises at the same time, also has constrained the residential building expense

(b). Microenvironmental factors(SWOT analysis)

While Sino-Ocean Land is reinforcing its leadership position in Beijing, it is also taking advantage of its rich experience and robust strength to consolidate its development strategy centered on the Pan-Bohai Rim. Meanwhile, it is progressively making inroads into high growth regions in China such as the Pearl River Delta and the Yangtze River Delta.At present, Sino-Ocean Land has 28 projects in Beijing, Tianjin, Shenyang, Dalian, Hangzhou and Zhongshan, each at a different stage of development. The Company’s land reserves amount to about 10.18 million square meters (8.81 million square meters if calculated on the basis of the Company’s holding interest), and 75% of it is situated in the Pan-Bohai Rim, which has great potentials for growth. Sino-Ocean Land also have a lot of floating capital,the Company will continue to increase its land reserves to maintain its future development. Meanwhile we also actively participate in the Grade One developments of important cities to strategically support the Company’s acquisition of land resources.

But price is the biggest bottleneck,high-income earners will be the market force. It is main market is medium and highearners,so the market is smaller than other company.

(c). Competitive strategy

Ocean-based real estate in their own development but also to keep a good corporate citizen, in his capacity as an active part in public welfare and charity.  Company putting in a lot of special funds each year for contributions to public health, education, environmental protection, poverty alleviation, public utilities, such as body-building, it has won a good social reputation and public image; in helping others, but also to cultivate its own.

(Appendix 2)

D. Financial Forecasts and Budgets

Sino-Ocean Land Announces 2008 Interim Results

Revenue and gross profit soar 78% and 180% respectively

2008-09-09

Sino-Ocean Land Holdings Limited announced its interim results for the six months ended 30 June, 2008. The Groups revenue reached RMB 3.25 billion, representing a substantial increase of 78%, while its gross profit surged almost 180% to RMB 1.41 billion.  The Groups gross profit margin was 43%, up 15 percentage points from the corresponding period of 2007. Profit attributable to equity holders decreased to RMB 542 million, mainly due to a significant one-off gain of an after-tax profit of RMB 610 million from the disposal of a jointly controlled entity in the first half of 2007. The Board of Directors proposed an interim dividend of HK 3 cents per share.

 

Solid Financial Position

 

As at 30 June 2008, the Groups net debt to shareholders equity ratio was at a relatively low level of 35% while cash on hand amounted to RMB7.9 billion. Meanwhile, the Group was able to have unimpeded access to low cost finance despite the tight credit market condition. The Group could secure loans amounted to RMB 4.4 billion from January to May in the PRC and obtained a US$ 215 million syndicated loan overseas, demonstrating the confidence of the banking industry towards Sino-Ocean Land.

 

Mr. LI Ming, CEO of the Group, said, I am glad to see that besides achieving such impressive growth in revenue, the Group can maintain a healthy and sound financial position, which will enable us to avail ourselves of opportunities to acquire prime sites that will help consolidate our leading position in Beijing and the Pan-Bohai Rim. We will also be flexible with our sales strategies to boost sales. In response to any change in the market, we will take prompt action to secure or even expand our customer base, for example, by adjusting the price to make our mid-range projects more competitive, or by making our high-end projects even more desirable to our customers with top of the class quality.

 

Premium Land Bank at Low Cost

 

As at 30 June 2008, the total GFA of the Groups land bank was 10.6 million sq. m., while GFA attributable to the Group was approximately 9.25 million sq. m., all of which are at prime locations like city centers or traffic hubs, with an attractive average cost of RMB 2,326/sq. m. The Group added 536,000 sq. m. of sites in Beijing and Zhongshan to its land bank in the first half of 2008.

 

Commenting on the Groups development plan in the second half of 2008, Mr. Li said, Driven by the forces of urbanization and rapid economic growth, the property market in China, we believe, still has huge growth potential in the medium to long term; moreover, the purchasing power of our potential homebuyers will gradually recover after the Olympic Games. We are particularly confident of our long-term strategic development in Beijing and the Pan-Bohai Rim. It has always been our priority to ensure our operational efficiency, especially in asset turnover and cash flow management; and by adhering to our prudent financial management policy, we work to create the greatest value for our shareholders.

(Appendix3)

 

E. Controls

The course of development

(Appendix 4)

According to the chart,wo can see the development of the company, through effective management, from Beijing to coastal, Bigger and stronger,step by step to develop small target,and do it,then,they set down a new and big target, year after year ,they success.

 

To face unexpect situation, wo should

1, strengthens the supervision and group control ability the

2, funds and cost control ability the

3, marketing and coordination ability the

4, human resources and decision power

5, the customer relations managed capacity

F. Appendixes

Appendix1

 

Appendix2

From the beginning of the fragmentation of public events, to find the focus of public enterprises - in support of environmental protection, public welfare fund set up to regulate the operation. New real estate ocean-going public to explore the spirit of the road is a public enterprise to raise awareness on the road.

 

Ocean-going public real estate 15 years on the road

1993-2006 adhere to the investment continued to accumulate

2006-2008 based on the green, focus on

2008 public funds, the new left

 

1993-2006 adhere to the investment continued to accumulate

This is the public going to explore the road of the first period.  Going to inherit the property of large state-owned enterprises in the social responsibility of the fine tradition. Since its establishment in 1993, the company in environmental protection, national fitness, culture and education, public health and continuing into the cause of charity, made a lot of exploration. At this stage, the company does not have a clear goal of public service, but insist on investment, continued to accumulate.

 

2006-2008 to focus on, based on the green

From the beginning of 2006, ocean-going public took to the estate of a higher stage, scattered from the public came into the side for a continuous input system.

In 2006, in addition to real estate going to continue to adhere to all aspects of public welfare, but also found business owners and industry are closely related to public welfare platform, based on the Habitat green "communities old and new green" environmentally friendly public action. Around the platform, the activity has been going on for three years to carry out.

Through the activities of the native plant cultivation, water conservation, renewable resources, such as the use of environmentally friendly theme of the old community of hardware and software to help transform environmental protection, improve their living conditions. Activities spread to Beijing 2500 the old communities, site visits more than 200 community-old and 40 months old in the community for the successful implementation of the transformation of environmental protection, about 380,000 people directly or indirectly benefit. Old communities, the new green" has become a well-known social benefits of environmental protection, public platform.

 

2008 public funds, the new left

May 12, 2008, occurred in Wenchuan County, Sichuan Province of China 8 earthquake. Ocean real estate rapid response, Li Ming, president issued the first call for donations; and employees quickly raised more than 500 million donation in the disaster areas. The disaster triggered a huge offshore real estate thinking, how to find a good mechanism, so that the public be able to sustain, but also in disaster when the arrival of the rapid response. After going public fan of breeding and Health Foundation, the Fund organized a systematic undertake an offshore real estate companies to fulfill their social responsibility (CSR) functions, to become committed to the business and employees in the public welfare, charity in the area of the platform.

Community Foundation of ocean-going fan of the show appeared in public to explore the road to come to a new stage.

 

Ocean done by the real estate part of the public good

 

Environmental Protection

In 1999, in response to the country "to protect the Mother River - Green Project Hope Lin," called for large-scale public welfare activities in the county Hebeihuailai funded construction of the 500 acres of Green Hope Project Lin.

In 1999, the contemporary city square in Beijing held a "return to peace Square pigeons, become a small green angel" of the public good. Organized a series of lectures to enhance children's awareness of environmental protection.

In 2000, to be held in the county Hebeihuailai "offshore real estate project the green forest" tree-planting activities.

In 2000, the "ocean scenery," community planning, with the initiative of the urban environment renovation project, the original land concessions red line 40 meters to optimize the regional urban environment.

In 2000, in line with Beijing's bid to host the 2008 Olympic Games, "Ocean World" initiative to give 50-meter red line for the Fourth Ring greenbelt building.

In 2001, the "Protect Mother River" voluntary tree-planting activities and teaching assistants donor activities.

In 2002, donor organizations and the community know there are people who go to Inner Mongolia Duolun sand.

In 2002, Beijing adopted Miyun district, "Lin offshore real estate."

In 2003, collected at the Beijing International Sculpture Park urban green space.

In 2004, with China Biodiversity Conservation Foundation, co-signed.

In 2005, part of the organization "Yuanyangshanshui" owners to carry out tree-planting activities to beautify the urban environment.

In 2006, the "old community, the new green" environmentally friendly public action in the scope of the whole society to promote the concept of environmental protection cities, 10 more than the effective transformation of the old community.

In 2007, the company employees since 1998, the 10th consecutive time in the suburbs of Beijing to carry out tree-planting activities, expanding forest area of adoption.

In 2007, the owners of ocean-going world organizations in the community to plant trees and beautify their homes.

In 2007, continue to carry out the "old community, the new green" environmental charity, set up offshore fund green, a total of more than 100 community participation, direct transformation of communities near 30.

In 2007, North Fourth Ring greenbelt completed.

In 2008, "the old communities, the new green" continue, green travel activities, bike 300 into the community.

Culture and education

In 1999, contributions to the poor mountain Hebeihuailai teaching

Appendix3

 

 

Appendix4

In June 1993, COSCO Real Estate Development Co. to set up.

In July 1998, the national housing reform policy, the company increased development of commercial housing.

In January 2002, the Group of shares in China, COSCO Group, each with 50% of the equity.

In December 2004, Beijing began to expand beyond the region into the market in Tianjin.

In January 2006, Zhongshan into the market, into the Pearl River Delta.

In April 2006, Dalian entered the market.

In November 2006, the success of the introduction of well-known international financial investors.

In January 2007, to enter the market in Shenyang.

In September 2007, Ocean Properties Holdings Limited on the Hong Kong Stock Exchange main board listed on the success.

In October 2007, to enter the market in Hangzhou, into the Yangtze River Delta.

In January 2008, winning the success of Beijing Shijingshan District Shihcao project is the first result of a successful and smooth development of a secondary development of the right to compete

 

G. Bibliography