Cifi chairman Lin Zhong remains focused on high growth
Chairman Lin Zhong remains committed to his aggressive expansion strategy for Cifi despite the market correction, with a focus on medium and high-end homes targeting upgraders
Lin Zhong of Cifi Holdings (Group) is determined not to let the property downturn dent his plans for aggressive expansion. The Cifi chairman, with more than 20 years' experience in the industry, remains focused on high growth in the business, albeit with some caution.
We will continue to grow at a rapid rate and believe we can achieve the sales target of 22 billion yuan (HK$27.7 billion) this year, 44 per cent higher than that of last year. We have achieved 60 per cent of that target so far.
However, we will be expanding carefully. We will maintain gearing within 70 per cent and will not sacrifice our financial health to achieve business growth. Our gross margin continues to improve since listing [in 2012]. We believe sales growth next year will remain high, but I cannot state a figure now.
We judge the cycle movements quite well. All developers face the same market environment but have different strategies, with a different pace of buying sites and different judgment in the market cycle. Sometimes, all the data shows prices are still falling, but in fact the market has hit the bottom. We will speed up the pace of construction at those times. It's like when it's winter and it's still cold outside, but the change of season is near and spring is coming soon.