We are a leading comprehensive property developer based in Zhejiang Province, China,focusing primarily on the development of residential properties and the development, operation and management of commercial and mixed-use properties. Building on 23 years of experience, we have become a leading comprehensive property developer in Zhejiang Province and the Yangtze River Delta Region and are expanding into key hub cities, while establishing a distinctive brand image of developing properties with our fine and distinctive Hangzhou workmanship. According to the Industry Report, in 2017, we were ranked fifth in terms of total contracted sales of residential properties in all of the 11 prefecture-level cities in Zhejiang Province. We have also received Top 100 Real Estate Enterprise in China awards jointly issued by the Enterprise Institute of Development Research Center of the State Council, the Real Estate Institute of Tsinghua University and China Index Academy for six consecutive years from 2013 to 2018, with our rankings rising consistently from 75th to 74th, 72nd and 63rd in 2015, 2016, 2017 and 2018, respectively. As of June 30, 2018, in terms of our proportional interests, our total land reserve was 6,362,640 sq,m., of which 5,454,510 sq.m. was located in Zhejiang Province. As of June 30, 2018,we had 25 completed projects which were saleable or rentable, 54 projects under construction and 22 projects held for future development. As a real estate enterprise based in the Yangtze River Delta Region, we believe we are one of the leading real estate developers in terms of growth among the property development companies with comparable strategic development plans. Pursuant to the Industry Report, in terms of contracted sales, the CAGR from 2014 to 2017 and the year-on-year growth rate from 2016 to 2017 were 56% and 69%, respectively, both ranked third among the Zhejiang-headquartered property development companies. We focus on rapid and consistent development, and we have won many industry awards which we believe enhances our brand awareness.
We focus strategically on middle class customers as well as other customers. We offer four different residential property series to meet the needs and preferences of our target customers comprising high-rise residences, multi-storey residences, townhouses, stacked villas and villas. In addition, we develop mixed-use complex projects comprising offices, neighborhood centers,serviced apartments, hotels and other ancillary facilities, both for sale and for long-term investment purposes. We develop a wide range of projects in cities where we have an established presence while we also selectively expand into other regions that we believe have high growth potential.
We believe our outstanding track record is attributable to our strong execution capabilities and in-depth understanding of the property markets and development trends in the regions in which we operate. We believe that over the years we have built a highly-recognised brand name and accumulated a large customer base by consistently delivering quality projects to our customers.
As of June 30, 2018, we had 76 property projects in 14 cities which were under development or held for future development. These projects had an aggregate GFA of approximately 4,717,973 sq.m. for projects under development and approximately 1,212,891 sq.m. for projects held for future development. We believe that our large-scale and strategically located land reserves will provide us with a sufficient project development pipeline in the foreseeable future and contribute to our continued business growth.
Our Business Model
Our business operation focuses on property development and sales. We also provide property construction services and property leasing as well as hotel operations. Our property construction services refer to property project management services we provided for three residential projects which are not owned by us. Similar to our own property projects, we outsource the construction works of these residential projects to third-party construction companies.
We closely monitor the market conditions and sales of each project through our internal sales reports, as well as the sales management platform at our headquarters. We timely adjust our sales strategy and pricing to ensure fulfillment of our sales targets, and strike a balance between our target pricing premiums and sell-through rates. See “Business – Sales and Marketing – Pricing Policy”.