Zhejiang - Greentown China Holdings Limited

Chairman’s Statement
Dear Shareholders,
G r e e n t o w n C h i n a H o l d i n g s L i m i t e d
During 2011, Greentown went through a tough time from late autumn to severe winter, just the same as many other
counterparts in the property industry. Being the focus of the media and press, Greentown faced the storm and became
an indicator to the public. Fortunately, the Group is running well despite these challenges. In order to ensure the
sustainable development of the Group, we have rationally analyzed the macro situation and proactively engaging in
self-refection. We identified three major areas for improvement: we need to pay attention to basic national conditions
in China with in-depth consideration and research; we need to concentrate on optimizing and adjusting development
strategy of the Group; and we need to focus on consolidating and enhancing the Group’s basic skills in the industry.
First of all, we need to pay more attention to the basic national conditions in China as the Group has learnt many lessons
from our previous experiences on real estate regulation. Particularly, in 2011, the Group has suffered great loss from our
misjudgment on the intensity of control and regulation imposed on the property sector. This has attracted much media
attention, much of which were not positive. Clearly, merely focusing on our own business development is not sufficient.
The continual success of our Group requires us to have a comprehensive understanding of the different problems faced
by China in its process of modernization, from the macro to the micro. Without doubt, China’s urbanization process
is in full speed and will not step back. While we have full confidence in this, we also need to be aware of the twists and
turns in the process. All transformations in the history of human civilization were challenging and the process of the
urbanization of China is such a complex yet great task. It is our obligation to take part in such great process and try our
best to adapt to the environment, no matter how hard the environment might be. Looking at it this way, the adversities
suffered by Greentown in 2011 should not be regarded as a blow to the Group, but a tough experience encountered by
Greentown.
Secondly, as a result of our self-reflection, we determined that we have to optimize and adjust the development strategy
of the Group. As there was inadequate awareness of the twists and turns of the process of modernization in the past, we
were aggressive in seeking growth for the Company. However, we will establish a more stable and sound financial model
going forward. In order to fully leverage on the advantages of the Group, we have to maintain the core competitiveness
of the Group by concentrating on the development of mid-end and high-end properties. In spite of the challenges, we
shall not step back. We shall enhance the quality of our products as well as our services, so that we could build a more
solid shape for the brand of Greentown. In short, Greentown will focus on quality but not size going forward. Aside from
commodity properties, we will also pay more attention to our involvement in the construction of social housing. While
the economic gain from the construction of social housing is relatively insignificant, we believe that the participation in
this large and meaningful project will be beneficial to Greentown in the long run. The vitality of the Greentown brand
will only grow stronger when more and more people enjoy Greentown’s premium products and services.
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