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Long March of CCRE

Prelude


Long March, the strategic relocation of the main force of Red Army from revolutionary bases along Yangtze River to new base in North Shaanxi, took two years in the 2nd Domestic Revolution War, travelling 12,500km.
Our Long March is the progress of provincial development strategy started in 2002, aiming at covering province, city, town and village, the four layers of market in Henan. To "Build sweet home for all people in Henan Province", the strategic process need more than 20 years.
Chapter I

The Choice of History


Picture of Long March: In October 1934, after the defeat in the "5th anti-siege" of Central Revolutionary Base as a result of Left Adventurism, Central Red Army decided to relocate at the critical moment. The Long March started.
In 1998, after five years of the 1st round of macro policy control, real estate industry was identified as one of the pillars of national economy. After struggling in the low tide of the industry, CCRE's first high-end community "Jinshui Garden" was close to completion. Shall we step out of Henan and develop into first-tier cities like Beijing, Shanghai and Guangzhou, or trench in Zhengzhou and expand to other 17 prefecture-level cities in Henan? CCRE Group was facing the choice of history.
We realize that corporate strategy is subject to enterprise's self-positioning, which in turn depends on the choice of core value. Taking the core value of "Rooted in central China, contribute to the society", we left ourselves no other choice. Therefore, we decided the enterprise positioning of professional leader and local brand developer and thus the "CCRE provincial strategy", from provincial capital down to other cities.
Chapter II

A Blink of History


Picture of Long March: after Long March decision was made, Red Army experienced preparation, defeat, turning point, division of opinion about to North or South, consolidation, South march defeat and reunion of forces. During the course, there were 14 major meetings just to ensure right direction. In Zunyi, the great leader stepped out, in Maoergai, the division in inevitable. In Baxi, Red Army turned destiny from omen to bless.
During the two years, heavily outnumbered Red Army broke through the siege and interception of enemy, advanced into no man's land like snow mountains and prairie, migrated across 14 provinces, travelled thousands of miles, crossed Chishui River 4 times, occupied Guiyang while feinting for Kunming. The skilful movements among the mountains and rivers in Guizhou, Guangxi, Sichuan and Yunnan were accompanied by the resonance of war horses and bugle shuttling across the sky. From the hard battle on the bank of Xiangjiang River to the surprise attack alongside Chishui River, from bouts on Jialinjinag River to roars at Luding Bridge, from slews in Wumeng Mountain to victory on plateau of North Shaanxi, the series of battles became epic scrolls that shocked the nation. That was the excellent notation for idea, belief, nobility and the show of courage, insight and loyalty.
The Long March of CCRE dated back to 1998, working through strategy design, preparation, and deployment. In the process, there will be also refinements before the final sprint stage.
For eight years, backed by CCRE's objective reasoning and judgment, implementation of the strategy was divided into three stages, which means five years for deployment in prefecture-level cities, ten years for expansion in most of county-level cities, and another ten for expansion to major towns. Before taking the action, CCRE had taken three years to sort out and prepare five major resources: talents, capital, brand, customer and management.
At the beginning of 2002, when the attack bugle was sounded, our pioneers charged and occupied Puyang, Xinxiang, Shangqiu, Nanyang, Zhumadian and Sanmenxia. Our courage was heard over central China, our feat was known across Yellow River. Industrialization led to "U-town" in Zhengdong new district, urbanization gave birth to "Forest Peninsula" in 8 cities, "Woodpecker" walked through Osmanthus Garden to Palladio, "Schooner" rolled from Taohua Island to Guihua House, the joy of five month capital balance circumfused alongside White Turtles, and the triumph of nearly sold-out on the first day resonated in Sanmenxia. CCRE built greatness with ordinary works, harvested recognition with insistence and won respect with persistence. We stand on the height of city and strategy, applying manoeuvres and spreading seeds of culture, writing down ever lasting movement with unrelenting hard work.
On 28 April 2002, to welcome the first battle of provincial strategy, Feng Aiping, the then General Manager of Puyang Company, led the entire staff in the almost 50 hour non-stop efforts for the shining debut of Puyang CCRE City Garden…
In April 2003, removal battle of Nanyang Green Garden fired the first shot. Rain did not disturb the confidence and calm of Min Min, the then General Manager of Nanyang Company…
3:00 a.m. in March 2003, He Chuan and Wang Dong, the Chief and Vice Director of Zhumadian team roamed at project land. To start construction as early as possible, they passed many sleepless nights, portraying the project…
Also in June 2003, at another battlefield 200km away, the fresh project operator Guo Shuyu of Sanmenxia team was worrying about the relocation of high voltage wire. The anxiety and helplessness challenged her will to surpass herself and meet head-on the battle…
In December 2003, after series of unfruitful attempts, confidence of Shangqiu team was faltering. Vice Director Li Xiaodong bravely undertook the commanding post, started with customer service and cost control. The table was turned; CCRE won respect in this region…
In early 2004, the then Vice President Kang Kai led his team to Xuchang. To defend our brand, he vetoed the project plan over 40 times for a project no more than 10,000 square meters. It is after repeated deliberation that we build Palladio, which won glory in the old capital of China. That is the starting point of our fame in Xuchang…
In September 2004, Luoyang battle in western Henan was commencing. The young commander Huang Dongsheng held his position despite blooding in stomach. His reinforcement, Zhu Jing, holding young daughter in arms, travelled 300km to join the composition of Luoyang battle and further defined details of the opening…
In November 2004, facing tough situation in Shangqiu, Sanmenxia and Xuchang, the Group decided to convene the "7.11" meeting which is historical to our enterprise development. The meeting required team commanders to stand on "two heights" (the height of city and the height of enterprise strategy), to acquire "five recognitions" (recognition from government, experts, peers, customers and employees). The meeting strongly boosted confidence of the new generation of commanders in conquering market and improved team responsibility and commitment.
Same in early 2004, the then Assistant President Ding Meng, aged 30 then, could not resist the temptation of battle, actively undertaking assignment from China Urban Realty Association for the first "U-town" in China. Every morning at 7:00, the team vowed to joint all forces in their hands…
In early 2004, other strong woman, Wu Zhenlin led her team north bound, skilfully acquired long expected land, and deliberately organized the programme "Search for Labour Star". The consecutive moves won her first battle…
On 1 July 2004, four major districts, North Henan, Southeast Henan, West Henan and Zhengzhou were established. The main assault in Zhengzhou, the central battlefield, was commanded by the "Sisters", Wang Jing and Chen Ying. Faced by challenge of market innovation, they gave maximized play of their talents, with efforts irrigated in every leaf. On 26 July, the first media building book shook Zhengzhou market, a legendary name "Forest Peninsula" was on 22 pages of newspaper, and it opened its glorious victory in central China…
At the dusk of 27 July 2005, long line was waiting in front of Forest Peninsula in Pingdingshan. More than 300 customers waited the night in advance to be the first batch of purchaser. The resourceful 28-year old Director Yan Jiajie called on five buses to accommodate those customers in emergency, and provided dinner…
In September 2005, the Southeast district of Henan was in emergency. To deal with under sale for two consecutive years, the district commanding authority was passed to Sun Yanlong, the "Professor". Backed by his success in Osmanthus Garden, the first cultural theme project in central China, Sun stroke out with his best crew, Shi Shushan, Liu Dayong, Wang Guoqiang and Ma Xiaoteng. Their confidence and ambition were interpreted by the slogan "2006 is the year for Southeast"…
To stabilize the morale, the fourth commander Wang Guoqiang moved his home to Xuchang, and his wife resigned to accompany him. Ms. Xu Jing, the second commander of Sanmenxia, moved with her daughter, parents and nanny. Ma Shoubin in Zhumadian stayed in construction site for 87 days without going home, despite concerns of his family. Our young men and women relocated and had to postpone their weddings. Old employees kept on postponing their vacation: Liu Liang, Su Xiaolong, Meng Qingmiao, Guo Xiaomi, Xu Guangping…
Under the pressure of market, they were taken down by hard drifting life. When attending Ji Yuan front line, vice commander of North district Lu Guangyu passed out in his sleeping room. Then chief executive and commander of North district, the "Tough Lady", Feng Aiping had to be sent to hospital for overworking. Vice commander in Luoyang, Rong Ping, tested her courage for years in spite of waist illness. The director of kindergarten, He Cuiwei injured her calf when inspecting field site. She held on for more than a month to continue recruiting, until the Group ordered her to be sent to hospital…
Warfare at front line had their impact on the nerves of the headquarters. To ensure operation of the commanding system, Yan Yingchun, the first generation of pioneer led the third generation to send cultural supplies, capital, human resources and customer resources to the front in many sleepless nights. Deep in the night, lights in the office witnessed their fatigue, Shan Liuliu, Zhang Jie, Yang Bing, Hu Bing, Song Xiaoming, Zhang Weijun…
For five years, to assist the victory of main battle, property management and kindergarten team accompanied the main force to every battlefield, with the etiquette of ceremony and laughers from kindergarten. Wei Dingchuan, Wang Hewei, Tian Jianwei, Su Hua… Xie Jin, Pei Yunge, Wang Xiaorui, Liu Haiyan, Wu Jing… those young soldiers are 25 year old on average. Led by commander Ma Luchun, Zhang Liuling, Wang Zhihong, Kang Zhaoxia and Chen Li, they spread the reputation of outstanding service and Little Harvard kindergarten with CCRE.
On 14 October 2006, our football team, after 13 years of efforts, successfully upgraded to top class. The endurance and fortitude were passed through times. Zhang Yu, Yang Nan, Wang Suisheng, Men Wenfeng… generations of commanders and their troopers Song Qi, Chen Wen Jie and so on, hold the pride of football in central China!
In October, the capital market "Task Force" led by Wang Tianye reported victory back from Hong Kong, shareholder restructure prior IPO in Hong Kong was completed. CapitaLand from Singapore injected HK$600 million to join us in developing central China market.
…… ……
From those shots of glory and from CREE builders, we could detect the ever advancing heroism of Red Army soldiers in the Long March, the teamwork spirit, the revolutionary optimism and the pursuit of revolutionary idea.
Though some of our soldiers are not with us for some reasons, but their names will always be found on the book of laurel. They are with CCRE. Their stories will be sung in CCRE.

Chapter III II

The Challenge of History


Picture of Long March: during two years of Long March, after hundreds of battles and skirmishes, Red Army broke blockades, climbing across snow mountains and no man's prairies. With enemy blockade in the front and pursuing troops in the back, the Xiangjiang River battle cost Red Army over half of its troops. After all ordeals including the rectification of left adventurism and right opportunism as well as flightism and separatism, Red Army finally made the strategic relocation.
Our Long March involved no gun fire, no blood shedding, but in the promotion of strategy, under the swinging market conditions in China and abroad, as well as macro control policies in tandem and the accelerating industry capitalization, developer's life span become shorter, and the industry layout was changing dramatically. Most of the players were facing the risk of being culled out. The cruel competition made the market a battlefield for us. Meanwhile, we had to experience many trials.
Firstly, the trials of enterprising. Outstanding entrepreneurs fought their way to the top, Lenovo, Vanke, Mengniu, 阿里巴巴…they all did. Enterprising we are talking about today, is not simply the spirit of hard fighting. It reflects the spirit of hard fighting, and requires the team to be armed with sense of orientation, commitment and responsibility. Not simply devoting and fighting, it is based on interpretation and sublimation of core values, commitment, strategy, planning and proposal, and it incorporates heroism, teamwork, optimism and idealism in implementation. When we study on survival rules of enterprise, we identifed the relation chain of "core values → positioning → risk awareness → learning organization → innovation → core competitiveness → long survival". In the search for market laws, we found that No.1 in "eyeball economy" has unrivaled resources. "Surpass and to be No.1" is therefore not only our tactics and required by our mission, but also the primary law of survival for enterprise. What challenges us today is that after we won the leading position with our "Surpass and to be No.1" spirit over tens years ago, when our executives are sitting in Mercedes and managers in their own cars, could we keep the "exploit, plough and spin" enthusiasm of Red Army in North Shaanxi, could we fight like the first generation, finding customers and handing out flyers on bicycles, could we like the first generation of regional city explorers to ignore payment (we did not provide any relocation allowance then) and fight, could we work seven days a week, full time a day for a flawless proposal, opening or outcome? Experience tells us that "persistence" is easy to say, but hard to do. The success in the past is the biggest enemy for a leader today. Surpassing ourselves require courage, study, understanding, and most of all, new horizon. If you don't believe the power of will, you won't be able to understand how Red Army used only 13 years to chase Mr. Chiang Kai-shek, and his 8 million money supported forces to the island of Taiwan.
Secondly, it is the trials of professional capacity. By professional capacity, I mean three layers, enterprise, manager and expert. Professional capacity at the enterprise level is interpreted by profitability, production capacity and service. When we first stepped into capital market, we found that according to the rules in it, "spirit" is not favored; instead, profitability, land reserve and concrete strength make the difference. In the club of Hong Kong listed real estate companies, "Henan Complex" and "Social Benefit" equal to nothing if not embodied by profit. Over there, people won't judge you by lower standard for your background as coming from developing region, neither do they praise you for your construction work or your efforts made.
It is for this reason, we can't give up for being under different environment and unfair efficiency, or feel smug about what we have back at home is taking the lead now. What we can do is to hang in there, making painstaking efforts to achieve profit at a consideration of three or even five times of work. Then we can find our foothold in the crowd of giants. Production capacity and service capacity, as the other two kinds of professional capacities at enterprise level which have been realized in the industry, are the base of enterprise, and the premise of profit. As for production capacity, we are in the middle stage of development, far behind the forerunner of industrization Vanke. Vanke has a R&D team of over 200 researchers, hundreds of patented research findings and the ongoing residence research projects assigned by the government. It is the leader of China's residence industrialization. We have been working hard to make product series and standards, and we have proposed the approach of improving production capacity by establishing "three cooperators" comprising designer, construction contractor and supplier. The fundamental work to follow Vanke still has a long way to go. We hope to keep our product's advantage in local market by this run-after tactics. Service is another base of developers. It is often the key to win or lose for players in a matured industry.
We are the first to provide professional service to customers in our local market, and therefore the first to harvest. The hot sales in City Garden phase I was attributable to the prestige we built among owners of Jinshui Garden. A few years ago, harassed by construction quality problems in Jianye Square and City Garden, plus more attention on service from rivals, our leadership in service was once threatened. For two years, we paid tremendous economic and human resources to win it back. We deeply realized the close ties between customer resources and development of enterprise. Our challenge now is whether we can provide good service one day and every day. Through the community platform in 18 cities that will be established in 2 years, we will construct a customer service network and customer resources management system featuring our strategy, to feed back corporate growth with customer resource value. By providing better products and service, CCRE members will be able to enjoy "seamless CCRE service" in the entire province, and to experience "nobleness, harmony, health, growth and infinity". Professional capacity at management level refers to manager's ability to lead, organize, coordinate, make public relations and control the entire situation in the progress of leading team and on the base of certain specialty capacity. Our managers are basically trained and grew after the idea of "learn by doing" being implemented. Most of them come from certain specialized field (especially marketing) and few has managerial background, thus lacking theoretic system guidance and management expertise. They basically adopt experiment approach in investment decision making, market analysis, system management, product management, organization design, market promotion, leader art and cultural construction. Especially after strategy, stage planning and annual plan are decided, managers mostly rely on their experience when making out overall implementation plan and allotting resources. This passive, long running "amateur commands expert" is not going to sustain our leadership in the industry. In the future, we will upgrade management capacity through selective training in all layers and directions. Professional capacity in expert level refers to specialized capacity in they own specialties. Jack Welch's core idea on enterprise management is to make top company with top talent. He regards the improvement of personal specialty as priority of personal work. During his nearly 20 years in GE college as lecturer, he only skipped two lectures for surgery and force majeure. What we are facing is whether we can nurture first-class experts out of the existing 7 major specialties, and if not, to introduce first-class talent to align the quality of entire team with our strategic goal. Frankly, the difference between us and Vanke, is not on spirit, but on professional area. Such differences have their say in market research, product design, cost control and other aspects. And there are external factors such as environment for talents, as Shenzhen converges China's talents. So we need to build CCRE into a learning organization more than ever. A specialty competition is going to be held in the Group, to give one at least something he's good at and to cull out those who have little specialty and not willing to learn. That is how our strategy is implemented, our plan becomes reality, our products win market, our services satisfy customers. That is how to perfect our product, our work and our service. Besides the above basic challenges, CCRE people still face a range of challenges from strategy, temptation of various interests and enterprise cultural. When the existing provincial strategy collides with obstacle, can we hold Henan and create economic miracle under inferior environment? When facing temptations, can we trade nearsighted benefit for longer-term profit, to overlook trivials and make overwhelming moves? When market condition changes, investment environment becomes unfair, when efforts get nothing in return, can we keep the corporate cultural of "Credit, Responsibility, Morality and Righteousness"? Among such challenges, some are for a certain stage or limited to one aspect, but more are for longer term, hard to realize, last for ever and down to our root. It takes the entire CCRE people to bravely and actively cope with. When the storm is repelled, rainbow would be ahead for us.
Chapter IV

The Mission of History


Picture of Long March: when Red Army embarked on Long March, there were 86,000 of them. They lost over 30,000 in battle during the march. When the forces were joined in Northern Shanxi, there were less than 100,000. They survived the battles and the distance on the back of spirit and will. Long march was a declaration, propaganda and sowing machine. It advocated idea, spread belief, undertook mission, created bases and new China. It is a miracle in human history.
The Long March in China's urbanization process by CCRE started in Henan, the miniature of China, a less developed province in China with the largest population of nearly 100 million, the lowest urbanization rate and the largest agricultural economy. During the process, we work hard for the "Four Unifications", namely, the unification of economic benefit and social benefit, material demand and psychological demand, enterprise interests and employee interests, goal and process. It is fair to say that given the market condition, talent environment, financial environment, policy environment and social ideas in such a market as Henan, our qualification for capital market should be a miracle in central China, not to mention such higher level pursuits as "social benefit, psychological demand, employee interests, process". And let alone our target as expanding from provincial capital to towns and villages, and to "Build sweet home for all people in Henan Province". Couldn't it be a new Long March in the process of urbanization in the new century, which spreads advanced culture, modern civilization and renewal to traditional ideas with concurrent and historical significance?! It is due to the long term, complexity and difficulty, that we call it Long March. How to adapt our team to new market, and operate in an under-regulated market condition? How to compensate the "management short board" and improve the separate and overall profitability? How to build the system, improve mechanism and optimize process? How to present more humanistic care, to make our team tough, specialized, innovative and above standard? How to make everybody in CCRE more progressive, happier and wealthier? How to undertake more social responsibility and perform more social commitment? All such tough questions are to be answered by non-stop and courageous exploration.
"A precious personality like gold and jade must come through extreme blaze; a stunning feat must be done on thin ice." "If we build oven hot enough, gold and steel are sure to melt. If we are as broad as sea, there will nothing we could not accommodate". "Hard trials are done by strong will, and destiny is not going to betray hard working souls." After 15 years of ploughing on the culture saturated land of central China, CCRE has collected wisdom, strength and spirit from older-generation maxim and ancient civilization. We firmly believe that Henan to China, just as today's China to the world, will boast of its irreplaceable position and influence. We would like to undertake the mission of history to promote urbanization in Henan.
We march on our road, without a trace of regret.
The Long March of CCRE is bound to leave its mark in the epic of China's urban civilization development.
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