德瑞新闻 / News
Interview with Mr. Yao Tianping: Long-term and localization is the steadfast choice for the development of China Dreal Group in Africa
 
2013-03-05

 

        In the 2013 annual meeting of China Dreal Group just finished, when discussing of the future development and planning of the group, Mr. Yao Tianping, the chairman of the board, explicitly pointed out that: the long-term and localization development in Africa is the steadfast guideline of China Dreal Group, as well as the inevitable choice in the process of group development and expansion. After the end of the annual meeting, Chairman Yao accepted an interview, therewith making a further more in-depth and thorough statement. Below is the summary record for the content of interview with Chairman Yao.

         The friendship between China and Africa has a long history and firm foundation. China and Africa have the similar historical experiences, as well as the similar development history. The processes from unrest and poverty to stable, to opening, to development, to construction as well as to rich all have been experienced by China, even still being experienced, except for China starting its first step several decades earlier than Africa. With China achieving current developing outcomes and international status, there is no doubt that Africa will embrace its own grand development and brilliant future, which is the incomparable confident faith possessed by China Dreal Group and myself, moreover feeling more honored for being able to participate this great reform and attribute our bit.

         For half a century, several generations of Chinese leaders have consistently pursued the African policy of advancing with times, and despite the constant changes in international situations, the friendly cooperation relationship between China and Africa has always been progressing forward steadily. Especially with the successful holding of Peking summit of the forum on china-Africa cooperation (FOCAC) in 2006 and the propelling of Arica-oriented eight measures, the economy and trade relations between China-Africa has taken to a new step since 2007. African development requires foreign investment, meanwhile many Chinese companies are positive about the developing prospect in Africa. Today, Africa has become the investment hot spot for Chinese companies, with Chinese companies becoming the bright scenery for African construction as well.

         China Dreal Group entered the Africa in 2008, Angola being the first African country that we developing business with, and in earlier phase, we conducted engineering contracting and construction with partners. In 2012, in response to the call from Angola government of energetically constructing housings to ensure people settle down, as well as based on many years property developing and construction experiences in domestic of our company, we registered Mar Grandioso Real-Estate and Construction Corporation, starting the business of professional property developing and construction.

         Through nearly 3 years development, Mar Grandioso Real-Estate has become one of the biggest property developing and construction companies in current Angola and the whole western African areas.  We own the highest construction qualification approved by Angola government, as well as professional teams of construction design, park landscape design, real-estate design, engineering construction management and promotion sales; we owns a team with over 100 people of architectural engineers, W&E Engineers, supervising engineers and business administration personnel; we own a land reserve of nearly 270 hectares (about 4000 Mu); owning a storage base of over 30000 square meters and building materials reserve with a total value over 15 million dollar; owning eight professional construction teams, various large-scale machineries over 500 units and total staffs over 1500, wherein local staffs are over 1000.

         Rose Garden, the first large real-estate project invested and developed by Mar Grandioso Real-Estate which was prepared in September 2010 and officially opened for sale in March 19, 2011, is currently the comprehensive community with largest scale and influence, most complete design and highest modernized degree in the whole Angola area even western African areas. It covers an area of 156 hectares, with a planning construction area of 1.1 million square meters and a predicted total investment of $ 1.7 billion. Its main architectures including top grade detached villa, custom-made villa, townhouse and multi-storey flat, with a total residual units over 7000, equipped with complete community facilities including commercial streets clubs and schools etc., which will be divided into four periods to be completely finished in five years.

         Austin Garden is the second investment and development project succeeded Rose Garden in Mar Grandioso Real-Estate, which was official opening for sale on Apr. 26, 2012. The garden is located in the central area of KAMAMA which is the key investment of the government, covering a total area of 42 hectares and with a planning construction area of 230 thousand square meters to build over 2000 houses with a predicted total investment of $ 300 million. The developing products of the project include detached villa, semi-detached villa, townhouse, multi-storey flat and a commercial walking street.

        Following Angola, China Dreal Group will develop new large comprehensive property projects in other African countries like Guinea in 2013. The trading block in group matched with massive supplies demands along with the fast development of real-estate is fast increasing at a speed over 50% each year. Taking 2012 as an instance, the containers sent to Africa by China Dreal Group exceeded 1000, with a trade amount over RMB 200 million. Besides real-estate and international trade, China Dreal Group officially entered mining investment and developing business in 2012, whose mine areas in Angola has finished preliminary exploration and sampling and entered the phase of mineral processing tests and factory selection design, planning to build factory and start production in 2013; meanwhile the group has established Mining company and Mining office headquarters in Namibia, and the mine areas purchasing has entered the substantive phase, planning to obtain the mining right in 2013 and starting exploiting.

        Reviewing the fast development and outcomes obtained in African continent by China Dreal Group, in case for the experience conclusion, that would be: respect cultures, operate with integrity, pay attention to quality, create win-win and insist on the pathway of long-term and localized development.

        From the beginning, China Dreal Group has realized that there is definitely great risk if a Chinese company heads for a new continent with the investment involving several billions. Therefore it is necessary for us to understand Africa objectively and realistically, strengthen the preliminary survey for the political situation, economic development, market environment and cultural custom in destination country and manage to be prepared against wants. We should soberly aware the problems with varying degrees existing in most African countries, including backward infrastructures, low work efficiency, poor public security and bad living condition, accepting and facing the fact, being prepared and making effort to adapt and actively blending into, rather than complaining and conflicting, which is the respect for the African reality and national conditions. With such psychological basis, the company and employees won’t generate giant psychological contrast, being able to comprehend and feel at ease, thus settle down to make long-term developing plan.


        Chinese nation as the kindest ethnic group, we have experienced poverty and backward as well, so with our empathy we can comprehend more the yearn of African people for peaceful, rich and modernized life. Meanwhile we firmly believe that the future in Africa will be better. Only with this faith, the real respect for life, people, the traditional culture of African people, local religious faith and laws and regulations can be achieved.


        Currently, the number of staffs in China Dreal Group who are working in Africa is about 1500, the two-thirds of which are African fellows. Wherever in offices, on-sites, canteen or the sport ground in rest room, the scene that Chinese colleagues together with local staffs can be seen everywhere. We all understand that inside we are all the same regardless the color, therefore we share mutual respect and acceptance and make the same effort and support each other mutually.  

        Many Chinese companies, capitals, workers and goods go into Africa, which booms African economy and promotes African development, yet with some negative stuff occurring too. Some Chinese companies in Africa has low technical content, and the operation behaviors in many companies are lack of standard and integrity. Although with low price, many things constructed or made in China have the bad reputation of poor quality as well. 

        The main business of China Dreal Group in Africa is real-estate and mining, and the international trade bases on the support from real-estate and mining, which are all long-term investment and operation behaviors. It is possible that some companies which ruin their brand with perfidy behaviors can just walk away, whereas the housing and mines of China Dreal Group can’t act in the same way. Therefore from the very beginning our guideline is integrity operation, quality attended and long-term development.

        Take the real-estate project developed by us as example, we didn’t choose to sell the uncompleted real estate or drawing, although it may reduce the input and lower the risk. Our developing mode is opening to sale only after gaining the land, investing abundant money, finishing systemic planning and design, finishing sample construction, finishing basic construction, the buildings actually built up and the real estate beginning to take shape are all completed. It is what we call seeing is believing, and only visible and touchable things are real, as a result customers are confident of our true real estate and of quality presented in front of them.

        Architecture is a work over hundreds of years. I often ask our workmen that whether do you want to build houses in a mess sneered and rejected or to build architectures being praised for one hundred year? Today, Rose Garden and Austin are not only the representatives of beautiful homes, and quality & brand in the hearts of local people, but also “the pride of all the Chinese” in the heart of local fellow Chinese. We often say win glory for the motherland, but only sincere management and first quality to win respect and praise of African compatriot, as well as providing down-to-earth things can we win honors for our country indeed.

        There is no free lunch in this world; no pains, no gains. Development, expansion, profit in Africa can only be obtained through pains. Unilateral gain is not permanent; but only creating win-win is the way to sustain development.

        Apart from opening, practicability and efficiency, the biggest advantage of China Dreal Group is good at creating win-win. Take development of real estate as an example, the modes to obtain land are various, including the land purchased in cash, the land jointly developed through cooperation, together with the land given by the government to be constructed and managed by us and the property right of which will be returned to the government after several years. However, no matter what the cooperation mode is, creating to get win-win is always the fundamentality of our decision. For example, for developing land cooperatively, we will gather the partner owning lands to form into a joint venture, they offering land, we offering capital, design, construction, marketing, and management to jointly develop the land. In such cooperation mode, we invest more and risk more, but from the perspective of long-term development, we have confidences on African, future, and our professional experience, so we are willing to shoulder more responsibility; moreover, towards such cooperation mode, our partners are also full of confidences naturally. For both parties, this gives full play to the advantages of resources, since both parties work brilliantly and are full of confidences for cooperation.

        From another perspective, upholding localized development, China Dreal Group has created a wider range of win-win mode. In 2012, the Group developed its workforce in Africa to more than 1500, including more than 65% of local people; in 2013, the targeted proportion of workman localization is more than 75%. As for the employment of local employees, they will be gradually extended to technical, sale and management layers from basic operating post. Besides, the Group has also established a clear plan, that is, since 2012, outstanding local employee and the children of local partners has been selected to study in Beijing, focusing on training medium-to-high-end management staff. The study period is two or three year, and the Group will pay for all the fees for students abroad and living fees. Meanwhile, those selected will interne in the Beijing office and other subordinate bodies of the group, to blend in the big family of enterprise furthermore.

        In the long run, only localized “mutual benefit and win-win result” can guarantee long-term stable and continuous development of China enterprise in Africa. In addition to fundamental facility construction, excellent engineering quality, and goods made in China, what can be provided to Africa by Chinese enterprise is technological development to the local, including establishment of localized industries, improvement of Chinese manufacturing capacity, decrease in cost of local products, promotion of local employment, thus, driving long-term development of local economy and society. Additionally, it’s important basis of localization to increase the employment of local staff, including respecting local labor policy, protecting legal interest of labor, strictly complying with local laws, paying various insurance expenses as stipulated according to local requirements, etc. Only in this way can the enterprise really implements localization to be accepted and welcomed by local people, as well as wins support from local government and people, and the development of Chinese enterprise in Africa can enters to long-term development with virtuous cycle.

        The cooperative experience of China Dreal Group and local partner in Africa shows that, actively using local staff and giving full play to them can not only effectively reduce the labor cost, but also develop the enterprise by African employers that is a push factors. The African employers are familiar with the market condition and local conditions and customs, which are indispensable precious resource for enterprise development, among whom, there are no lack of intelligent, diligent, and highly responsible talents. For sales team of Mar Real Estate as example, most employers are local people in Angola, who have strong working ability, including advantage of language, understanding of local market, relationships quickly established with customers, which cannot be displaced by Chinese employers. The development of China Dreal Group in Africa depends on the contribution of African employers.

        Significant differences exist in the language, culture and social background between China and African countries, as well as distinctions exist in the mode of thinking of Chinese and African people. African employers of Chinese enterprise are the bridge between Chinese enterprise and local government sectors and society, while Chinese enterprise provides a wide platform of talent for African people.

        Another important basis of localization refers to training of employers; when we strengthen the training of local employers, we shall require Chinese employers to improve learning of local language and culture to adapt to the management requirements and team establishment under the trend of localization as well. At many jobs of China Dreal Group, employers with different colours work together, communicate technology, learn language, and exchange cultures, and only in such process can we have more comprehension to create a effective and delighted working environment, from which real team cohesiveness comes.

        Long-term and localized development also implies that the enterprise has to undertake social responsibility. The enterprise culture of China Dreal Group is honest behavior, sincere operation, high-quality product, and brand created. Plain and simple, these expressions mean that comprehensively pay attention to the benefit of company, society, customer, employer, community and other stakeholders, focus on protection of resources & environment and sustainable development, comply with legal and ethic requirements, as well as regard the economic development of the country and improvement of living standards of people as social responsibilities of enterprise.

        In the development and construction of China Dreal Group, it's found that the environmental protection standards of many countries in Africa adopt European standards; furthermore, some have higher requirements than that of our domestic standards performed consistently. Although some local enterprises in Africa fail to do so in fact, we will demand on ourselves with the highest standards. It includes the local environmental protection that are paid close attention to by us; our principle is long-term development, planning in one hundred year, the principle for establishment and plan, not causing local environmental destruction, pollution, and legacy, including no delivery of materials with environmental hazard to Africa. In our mine planning, the requirements for mine area conservation, resource saving, environmental protection, greenhouse gas emission and other aspects is an important premise.

        Over three years in Africa, China Dreal Group has developed rapidly by depending on strength of Group, support from local government and cooperative partners, effort of all the Chinese and African employers, as well as advanced development concept and excellent product quality. Mar Real Estate is a leading brand of Angola real estates, more importantly, through three years of accumulation, the company has a mature experience and operation team who carries out development, construction and management of real estate in Africa. Despite we has short time to be involved in mining, the development in various aspects has been on the right track recently. At the same time, through continuous investment and business accumulation of the group, we have also completed fund circle and reservation required for self-development.

        In terms of development of China Dreal Group in the future, we will continue to rely on trinity model of group development, take trade and logistics as powerful logistical support, deliver construction materials and mining supplies, make real estate stronger and bigger, make use of brand effect, together with set up development platform, meanwhile, continue to strengthen investment and development of mining. Since owing successful mode and experience, we will gradually expand to other conditioned African countries apart from Angola, Namibia and Guinea, by copping our successful experience. Nevertheless, long-term and localization development in Africa is the unswerving guiding principles of China Dreal Group, and the inevitable choice in the process of group's development and expansion.    (March 5, 2013 Compiled by Office of Board of China Dreal Group)






 
 
 
 
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