In the past two years, Anar Group and its affiliated companies have made relevant investments in the secondary market for industrial extension and value investment, arousing the concern from some media and markets. We are making the following announcement to avoid the unnecessary misunderstanding and clarify our investment strategy.
I. Where do we come from? As a grassroots private enterprise, Anar Group is a later generation in the real estate sector. Starting from the sales agent, we have grown into a real developer after ten years of hard entrepreneurial journey. Anar Group has the honor to participate in China’s real estate industry and enjoy the most flourishing ten years. With the grass-roots tenacity and through the arduous pioneering, we are lucky to complete the original accumulation and the scale growth of the enterprise development. We are grateful to this era when our ordinary people may have a dream and may have a chance to succeed. A few years ago, Anar Group became one of the top 100 companies in the Chinese real estate industry.
II. Where do we go? As a member of the real estate industry, we deeply understand that the tree can not touch the sky. The overheating of the real estate market, the price bubble of the real estate in some areas, and the ceiling of the real estate industry have made Anar Group reflecting its strategic upgrading in the recent three years. Based on their accumulated knowledge and the employment experience, the core team confirmed to rebuild the overall development strategy and capital arrangement with the aim of industrial real estate operator, incubator of technological innovation, and industrial integrator. In the real estate industry, we will give up auction bids for the auction of Diwang plot (the most expensive plot). We will pay more attention to the industrial, functional and management-oriented real estates that are in line with the national strategy and the urban orientation. In the science and technology industry, we checked the catalog of emerging industries in our country and based on our own industrial resources, we have laid four incubators for technology industries in China and abroad, involving in the technical cultivation and investment acquisition of a large number of cutting-edge technology projects. In the real estate industry, we carefully studied the major development concepts such as supply-side reform and state-owned enterprise reform, carefully studied the capacity cycle, and participated in the open market investments of listed state-owned enterprises in the steel and agriculture industry (the secondary market is the most direct, the most simple and most likely way for our grassroots private enterprises to participate in the state-owned enterprise reform and physical investment).
III. The source of our investment. So far, we do not have any financial license, and we do not have any market-based investment fund-raising. The every penny we invested is the capital accumulation during the development of the company. Except the loans and bond financing relevant to the actual real estate investments, we have never magnified any financial leverage for strategic investments. Until now, there is no pledge or financing for all our investment in the secondary market equity. We are conservative and cautious in the financial arrangements and financial operations of the company. In the real estate industry, our actual leverage ratio and corporate debt ratio are also relatively low. We are ready for the winter season of the real estate industry and we have made the capital planning for the strategic transformation of the company.
IV. Our investment philosophy. First, no speculators. Our investment arrangements are long-term, stable and strategic. Second, no arbitrageur. Our investment is based on the real economy, industrial development and real business growth. Thirdly, no leverage. Our investment is based on our own financial capabilities and capital accumulation, and we do not have any illegal arbitrage in the financial markets. Last, no mysterious crocodile. All our investments are open and transparent. As a grassroots private enterprise, we totally know that our investment opportunities rely on national strategies, macro research and open markets. Our investors are transparent, as we know that there will be no investment returns when facing the risks of illegal operations.
We welcome the supervision, criticism and advice from all those friends who are interested in our investment.
We hope that all market players will treat our investment cooperation with the greatest goodwill.
We hope the government officials and the relevant regulatory authorities can give more encouragement and development opportunities to us.
Anar Real Estate Group Co., Ltd.
April 17, 2017