Annual Report - QuamIR

Management Discussion and Analysis (Continued)
Prospects
Properties
The government will likely continue to maintain its tightening stance on
China’s property sector over the first half of this year. However, management
expects the government to moderate its tough stance towards the sector by
the second half of the year, and given strong end user demand, the market
will be strong over the long term.
As such, the Group will continue its transformation from a construction
company to a PRC property developer. Having commenced development
on all of its major property projects, the Group is poised to benefit when the
industry recovers. The Group’s strong balance sheet provides strength given
the uncertain period and the opportunity to take advantage of opportunities if
they arise.
For 2012, the Group will continue selling and leasing out remaining units at
its Nanxun property, and will increasingly focus on presales of its residential
properties in Jiangmen and Tianjin Hongqi South Road. While much of the
sales proceeds will not count as net income for 2012 (sales are recorded after
handover of the properties to the purchasers), they will generate substantial
cashflow, and net income for the coming years.
Meanwhile, the Group continues to explore selling its non-core properties and
assets. Management continually evaluates property market conditions, and
looks to sell existing assets that no longer match with the growth direction of
the Group, with the intention of reinvesting the proceeds in higher potential
projects.
Alternative Energy
CRE believes it is close to obtaining approvals for its Siziwangqi Phase 2
windfarm and is exploring other opportunities in other provinces, such as
Yunnan. Please refer to the CRE (stock code: 987) annual report for more
details.
Employees
As at the end of December 2011, the Group’s operations in Hong Kong and
the Mainland China employed the total of approximately 680 employees.
All employees are remunerated according to the nature of their jobs, their
individual performances, the Group’s overall performance, and prevailing
marketing conditions.
987
680
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