Crossover Cooperation between CIMC and Country Garden

CIMC announced on September 27, 2016, that CIMC finalized a strategic cooperation agreement with Country Garden Group. The responsible officers of the two sides expressed that the two companies will establish long-term, comprehensive and deep strategic partnership in real property, modular building, supportive services for real property projects (vertical parking garage, e-commerce) and other fields. 

The top leaders of the two sides had high expectations of the cooperation. CIMC’s President Mai Boliang said, “Country Garden is an excellent enterprise and has been sticking to reform and innovation since its inception. It has advanced development philosophy and a great number of exemplary points. CIMC and Country Garden have similar enterprise visions and cultures. Therefore, I am confident that we will make excellent achievements”. Country Garden’s Chairman of Board of Directors Yang Guoqiang expressed, “CIMC is a respectable company, and it ranks No. 1 in a number of areas in the world. It is a great honor for us to conduct deeper cooperation with CIMC in relevant fields.”

CIMC’s land reserve development means a lot of possibilities

Country Garden Group is headquartered in Shunde, Guangdong Province, and it is one of China’s top 10 real property enterprises and China’s largest new-type urban residence houses developers. Country Garden Group operates in a centralized and standardized pattern, and engages in real property development, construction, installation, real property management and investment, hotel development and management. According to the agreement, the two sides will search the interactive resources in different industries by making best use of their advantages, with a focus on real property development, relevant building process, supportive facilities, etc. 

Over past 30 years, CIMC has accumulated a considerable amount of land source reserves. During the process of industrial rotation and transformation and upgrading of business growth pattern, CIMC is facing the challenge to uncover the value of its land source reserves. CIMC has entered into strategic cooperation agreement with GLP on the development of logistics property business. However, due to different locations and future positioning and functions of different land resource reserves, there should be multiple development patterns. The cooperation between CIMC and Country Garden is another attempt, since Country Garden is an outstanding developer of residence houses and commercial buildings.  

The responsible officers of the two sides expressed that CIMC and Country Garden will conduct specific cooperation on 2 to 3 projects and enter into formal cooperation agreements.

The cooperation will bring more business opportunities to CIMC’s business segments

The cooperation will enable CIMC to give full play to its land resource reserves and bring more business opportunities to its business segments.

First, the modular building. The two sides agree to explore and promote the application of modular buildings (hotels, apartments) and jointly develop overseas markets.

Second, the automatic and vertical parking system. The two sides agree that under the same terms and conditions, Country Garden will purchase CIMC’s products and services in its real property and hotel development projects and recommend CIMC’s products and services to its affiliated companies, and CIMC will offer price discounts in return.

Third, CIMC E-commerce service with electronic express delivery picking machines as the major products. CIMC E-commerce is an innovation project that the Group has incubated in recent years, and it has erected about 10,000 express delivery machines in Shenzhen, Guangzhou and Beijing, with its market shares ranking first in these first-tier cities. CIMC E-commerce has successfully completed its “A” round financing in 2016, and it is considered as a Star Project in the O2O field. CIMC’s partnership with Country Garden will bring new business growth opportunities to CIMC E-commerce. The two sides agree that Country Garden will give preferential consideration to the products of CIMC E-commerce in the supporting programs of its real properties.