Times Property : Intends to Invest Hundreds of Billions of Yuan in 30 Projects for its "Smart Tow...

Times Property (1233.HK) launched China's first so-called 'Urban Operations 4.0' model--the 'Interconnected Value Creation'--in Guangzhou on December 13. Based on that model, Times also released a new product named 'Times Smart Town.' Mr. Shum Chiu Hung, chairman of the Board of Directors of Times Property, announced the launch of 'Times Smart Town Strategy' at the Times Property Smart Town Press Conference. Times Property intended to invest around RMB 900 billion in 30 'Smart Town' projects over the next five years, with the first projects launched in the Pearl River Delta region.

·Mr. Shum Chiu Hung, chairman of Times Property's Board of Directors

The briefing attracted great attention among people from all walks of life, covering many academic institutions such as DRC, Peking University, Sun Yat-sen University and Fudan University, as well as many large-sized enterprises, including Microsoft, Huawei, Siemens, Softstone, IBM, Roland Berger, BCG, Wang Zhigang Studio, etc., and representatives of major financial institutions, including ICBC, ABC, BOC, CCB, Ping An Bank, SPDB, COAMC and CZB, etc.

·Times Property Smart Town Press Conference brings together people from all walks of life

Sharing 'Dividends' in 'Interconnected Value Creation'

The core of the 'Interconnected Value Creation' model lies in value-creation partners, each of which can 'share value-creation dividends.' Meanwhile, residents become urban users, and developers become integrated urban operators.

·Mr. Zhang Liqun, deputy secretary-general of the DRC Academic Committee

· Dr. Harley Seyedin, president of the American Chamber of Commerce in South China

·Mr. Stephen E. Roulac, visiting professor of finance and strategic management at the Stanford Graduate School of Business

The ultimate goal of urban governance has always been to jointly govern and be a sharing city, striving for common prosperity by sharing development dividends among all participants. This is the foundation of China's urban operations 4.0 model, i.e., 'Interconnected Value Creation.' Before proposing the model, Times Property, together with various research institutions, conducted in-depth research and practice. As the industry's first product based on the concept of value creation, 'Times Smart Town' is expected to be the benchmark of China's industrial real-estate sector.

The keynote speaker, Mr. Liang Xiongwen, general manager of Times Industry Group, pointed out that, before 'Interconnected Value Creation,' which represents the future trend of urban operations, China's urban operations went through three stages of development. The first stage, or urban operations 1.0, was that of unit creation, which is characterized by the urban form with a compound as a clustering unit; the second state, urban operations 2.0, in turn consisted of commercial creation characterized by on-site transactions and scattered shopping malls, around which cities and industries would develop; the third was urban operations 3.0, i.e., Interconnected Creation characterized by relatively dispersed businesses focused on network-based industry.

The speaker explained that the company, after rigorous study, concluded that the next stage of China's urban operations would be 'Interconnected Value Creation,' which would be characterized by the sharing of value. Thus the future urban construction management model would be intended to achieve common prosperity and sustainable development through value sharing. The Times Smart Town model, with urban operations 4.0 'Interconnected Value Creation' as its schematic, has the following five characteristics: vibrancy; a closed loop; functioning as an industrial chain; smart systems; a minimal carbon footprint; and partners in value creation. Accordingly, a complete industrial chain will take shape in the Smart Town so that industry and enterprise can function with enthusiasm and efficiency while all participants benefit from the town's development.

·Mr. Liang Xiongwen, general manager of Times Industry Group

More Than 30 'Smart Towns' to Emerge in a Span of Five Years

Mr. Shum Chiu Hung, the chairman of the Board of Directors of Times Property Holdings Limited, announced the launch of the 'Times Smart Town Strategy,' thereby demonstrating the group's great ambitions in the sphere of industrial real estate. He said Times Property will invest approximately RMB 900 billion in 30 'Smart Town' projects over the next five years. The initial slate of projects have already started in the Pearl River Delta region.

·Signing ceremony of Times Smart Town strategic cooperation

·The official launch of Times' Smart Town strategy

This is not the first time that Times Property has engaged its efforts in the industrial real-estate sector. As a leading urban operator in the Pearl River Delta region, Times Property has successfully run five industrial-park projects, including Times Innovation Park of Culture Complex, Times TIT Creative Industry Zone, Times E-Park (Tianhe) and Times E-Park (Panyu). Thus it has, over years of exploration, accrued a wealth of experience in urban renewal and industrial operations. The Smart Town is the company's new strategic upgrade, with a layout based on 'urban operations 4.0: Interconnected Value Creation.'

Times Smart Town, situated near the first-tier cities or relatively developed second-tier cities and encompassing an one to three square kilometers, is usually less than an hour's drive from a downtown area. Moreover, it boasts characteristic industries with one or more complete industrial chains and provides amenities, including R&D, education, healthcare, business, culture, entertainment, leisure and living space. Accordingly, the Smart Town builds on the industry chain and caters to the needs of the industrial group. Through the integration of industry, city, people and culture, the Smart Town strives to be an intelligent, ecological, vibrant and futuristic industrial town that benefits its inhabitants and stakeholders.

Times Property has already signed contracts for two projects--Global Maker Town (Nanhai District, Foshan) and Baiyun Airport Town (Baiyun District of Guangzhou)--and is promoting their implementation. Global Maker Town, launched in 2016, is expected to be completed within the next six to eight years.

Mutually Beneficial 'Value Creation Partners'

As the core of urban operations 4.0--'sharing city dividends'--'value-creation partners' will be brought to Times Smart Town. According to the design, enterprises and individuals will become the town's 'value-creation partners,' participating in urban construction and management and accordingly sharing the dividends they produce.

General Manager Liang Xiongwen said, by the product, not only will the industry be developed, operated and upgraded via various means, but land value will be raised, whereby each land owner gains value and benefits. The company and partners will promote businesses in the towns through a variety of professional services. Those businesses will include technology service providers and consumers, all of whom will earn profits, expand the customer base and achieve enterprise value. Education covering all ages will be provided in order to encourage the growth of the industrial group while enhancing self-value. Local governments will experience a constant influx of tax revenue, while the city's public living space is improved. Town residents, business owners and enterprises will enjoy prosperity, industry will develop in a sustainable manner, and urban life will be vigorous. The value of Smart Towns will be realized by enterprises and the individuals who live and work there, so that the value of such enterprises and individuals will mirror the value of the town. In the Smart Towns, career and life will be balanced, and gradually the reality will mirror and unite with the ultimate dream of progress.

Thus, participants can become masters of the town as they realize 'common prosperity' and 'sustainable development.' 'Building Times Smart Towns is the 'Chinese dream' of people from Times, who believe well-being means living with dignity as opposed to merely a life of opulence. It is the mission of Times Property to encourage and facilitate the sustainable development of industries in a life of harmony based on a comprehensive array of new industries. As Mr. Shum Chiu Hung said, 'Times Smart Towns are the 'new towns' that aim to help more people lead the lives they've dreamed of.'

·Summit forum: City-industry integration for future intelligence

The National Development and Reform Commission, on December 13, issued Notice on Implementing 'The Thousand Enterprises & Thousand Towns Project' and Promoting Construction of Beautiful Characteristic Towns (Cities). In accordance with the construction principle of 'government guidance, enterprise dominance and market operations,' the Thousand Enterprises & Thousand Towns Project is designed to establish an effective docking platform between small towns and enterprises, direct the participation of social capital in constructing towns (cities), and ultimately promote town-enterprise integrated development. The policy's introduction has given Times Property the confidence needed to implement the 'Smart Town' projects.

It is therefore hoped that the 'Times Smart Town,' built on the concepts of vibrancy, a closed-loop industry chain, intelligence, low carbon and value-creation partners, will form a unique 'smart city ecology' that truly represents the concept of Urban Operations 4.0: 'Interconnected Value Creation.' We firmly believe that Times Smart Town will take the lead in the evolution of China's urbanization by creating a new model for progress in industrial real estate.