萬科企業股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號: 2202） 2024 年 報 重要提示 1. 本公司董事會、監事會及董事、監事、高級管理人員保證2024年度報告（以下簡稱「本報告」）內容 的真實性、準確性和完整性，不存在虛假記載、誤導性陳述或者重大遺漏，並承擔個別和連帶的法 律責任。本報告已經公司第二十屆董事會第十五次會議（以下簡稱「本次會議」）審議通過。所有董事 均親自出席了本次會議。 2. 本報告之財務報告已經畢馬威會計師事務所審計並出具了標準無保留意見的審計報告。 3. 董事會主席辛傑，執行副總裁、財務負責人韓慧華聲明：保證本報告中財務報告的真實、準確和完 整。 4. 公司2024年度分紅派息預案：2024年度公司不派發股息，不送紅股，也不進行資本公積轉增股 本。公司2024年度分紅派息預案還需提交公司年度股東大會以特別決議方式審議批准。 5. 本報告涉及的未來計劃、發展戰略等前瞻性陳述，不構成本集團對投資者的實質承諾，敬請投資者 對此保持足夠的風險認識，理解計劃、預測與承諾之間的差異，注意投資風險。 6. 本報告分別以中英文兩種文字編製，在對本報告（除按國際財務報告準則 ...

Financial Performance - Vanke reported a total revenue of RMB 200 billion for the fiscal year 2024, representing a 10% increase compared to the previous year[3]. - Vanke's net profit for 2024 was RMB 30 billion, which is a 5% decrease from the previous year[3]. - The company's revenue for 2024 was RMB 343.18 billion, a decrease of 26.32% compared to RMB 465.74 billion in 2023[25]. - The net profit attributable to shareholders for 2024 was a loss of RMB 49.48 billion, representing a decline of 506.81% from a profit of RMB 12.16 billion in 2023[25]. - The gross profit for 2024 was RMB 27.84 billion, down 58.72% from RMB 67.45 billion in 2023[25]. - The company reported a total revenue of RMB 343.2 billion for 2024, a decrease of 26.3% year-on-year[46]. - The net loss attributable to shareholders was RMB 49.5 billion, a significant decline of 506.8% compared to the previous year[46]. - The gross profit margin for the real estate development and related asset management business was 7.2%, down 7.4 percentage points from 2023[46]. Assets and Liabilities - Vanke's total assets reached RMB 500 billion, reflecting a growth of 15% year-on-year[3]. - The company's current assets decreased by 20.24% to RMB 917.51 billion compared to RMB 1,150.28 billion at the end of 2023[27]. - The net asset attributable to shareholders decreased by 19.19% to RMB 202.67 billion from RMB 250.78 billion in 2023[27]. - The company's debt-to-equity ratio stands at 60%, indicating a stable financial position[3]. - The net debt ratio increased to 80.6%, up 25.9 percentage points from the end of 2023, while the asset-liability ratio rose to 73.7%, an increase of 0.4 percentage points[104]. - Total interest-bearing debt reached RMB 361.3 billion, accounting for 28.1% of total assets, with 43.8% due within one year[105]. Market Strategy and Expansion - The company plans to expand its market presence by entering three new cities in 2025, aiming for a 20% increase in market share[3]. - The company has outlined a future outlook of achieving a revenue target of RMB 250 billion for 2025, representing a 25% growth[3]. - The company plans to focus on urbanization development, enhancing operational capabilities in diverse scenarios, and deepening participation in urban real estate revitalization[16]. - The company aims to strengthen integration with its major shareholder, utilizing resources for collaborative development in various sectors[16]. - The company is focusing on risk mitigation and sustainable development by leveraging resources from major shareholders to enhance operational management[38]. - The company plans to focus on five areas for future development: urban focus, business portfolio, model innovation, technological breakthroughs, and industrial collaboration[126]. Operational Efficiency and Challenges - The company faced significant challenges, including a substantial decline in sales and liquidity pressure, leading to large losses[12]. - The company has been recognized as one of the "Fortune Global 500," ranking 206th in 2024, marking its ninth consecutive year on the list[19]. - The company successfully repaid CNY 29.2 billion in domestic and international public bonds and asset-backed securities (ABS)[13]. - The company achieved a net cash flow from operating activities of RMB 3.80 billion, a slight decrease of 2.87% from RMB 3.91 billion in 2023[25]. - The company recorded a gross profit margin of 13.21% in property services, down 1.75 percentage points from the previous year[48]. Sustainability and Innovation - Over 60% of new projects incorporated renewable energy designs, reflecting the company's commitment to sustainable development[13]. - The company is investing RMB 5 billion in new technology development, focusing on AIoT solutions for smart property management[10]. - The company is leveraging technological innovation to enhance customer experience and product cost-effectiveness, particularly in the areas of AI and robotics[131]. - The company achieved a total area of over 335 million square meters meeting green building standards by the end of 2024, with an additional 6.997 million square meters added this year[71]. - The company has set nearly 50 sustainable development goals, focusing on carbon reduction, waste reduction, and energy usage, in line with TCFD guidelines[94]. Customer Engagement and Services - Vanke's total user base for its property services has grown to 10 million, an increase of 25% year-on-year[3]. - The company established five live-streaming sales training bases, conducting 108,000 live streams with 160 million views, effectively reducing marketing costs[53]. - The company’s long-term rental apartment brand, Vanke Boyu, maintains a customer satisfaction rate of over 95%, with a renewal rate of nearly 60% for existing customers[100]. - The property service segment, Wanwu Cloud, reported revenue of 36.38 billion yuan, an 8.9% year-on-year increase, with community space service revenue accounting for 57.8% of total revenue[73]. Project Development and Construction - The company has a total of 14 projects planned for completion in 2025, with significant areas under development in various regions, including Beijing and Langfang[135]. - The company has multiple ongoing projects with varying equity stakes, including 41.0% in Taiyuan Qingxu Project and 100.0% in Tianjin Dongli Lake Project[141]. - The company is actively pursuing new projects, with several under construction and planned for completion in the coming years[139]. - The company has a total planned area of 38,572,201 square meters for 2025, with a completion area of 4,633,269 square meters by the end of 2024[143]. - The company is focusing on expanding its footprint in Harbin, with projects like Harbin Jin Yu Yue Fu and Harbin Binjiang Metropolis contributing to its growth strategy[145]. Financial Management and Investments - The company secured new financing and refinancing of RMB 94.8 billion in 2024, with a comprehensive cost of new financing at 3.54%[35]. - The company has reported a total interest expense of RMB 13.72 billion during the reporting period, with RMB 7.07 billion capitalized[110]. - The company has invested RMB 508 million in R&D during the reporting period, representing a small proportion of its operating revenue[120]. - The company has a total of 1,200,000 square meters of planned capacity for 2024, with 800,000 square meters expected to be completed by the end of the year[164]. Market Trends and Economic Conditions - The real estate market showed signs of recovery since September 2024, with policies stabilizing market confidence[16]. - The national commodity housing sales area decreased by 12.9% year-on-year to 974 million square meters, with sales value down 17.1% to 9.68 trillion yuan[39]. - The average rental price in 50 key cities fell by 3.25%, indicating short-term pressure on rental markets[42]. - The overall market rent for logistics warehouses decreased by 9.7% year-on-year, reflecting increased supply and demand stabilization in core areas[45]. - The government has introduced various supportive policies to stabilize the real estate market, including lowering down payment ratios and mortgage rates[40].

Financial Performance - The company's operating revenue for the first nine months of 2024 was RMB 219,894,828, a decrease of 24.25% compared to RMB 290,308,491 in the same period of 2023[3] - The net profit attributable to shareholders for the first nine months of 2024 was a loss of RMB 17,943,298, representing a decline of 231.73% from a profit of RMB 13,621,477 in 2023[3] - The net cash flow from operating activities for the first nine months of 2024 was a negative RMB 4,847,650, a significant decrease of 2159.99% compared to RMB 235,324 in 2023[3] - The company reported a net loss of RMB 16.40 billion for the nine months, compared to a profit of RMB 21.03 billion in the same period of 2023[33] - The group's gross profit for the first nine months was RMB 18.96 billion, down from RMB 51.02 billion year-on-year[33] - For the nine months ended September 30, 2024, the total comprehensive income was RMB (15,556,237) thousand, a significant decrease from RMB 23,380,263 thousand in the same period of 2023[34] Assets and Liabilities - Total assets as of September 30, 2024, were RMB 1,357,196,773, down 9.81% from RMB 1,504,872,164 at the end of 2023[3] - The equity attributable to shareholders decreased by 6.65% to RMB 234,119,943 as of September 30, 2024, from RMB 250,784,613 at the end of 2023[3] - As of September 30, the company had total interest-bearing liabilities of RMB 327.61 billion, with a net debt ratio of 66.2%[18] - The company’s total liabilities decreased to RMB 982,838,332 thousand as of September 30, 2024, from RMB 1,101,938,633 thousand at the end of 2023[36] - Non-current assets decreased to RMB 374,358,441 thousand as of September 30, 2024, compared to RMB 402,933,531 thousand at the end of 2023[37] - Total assets less current liabilities amounted to RMB 606,365,015 thousand as of September 30, 2024, down from RMB 683,086,906 thousand at the end of 2023[35] Operational Highlights - The company completed the delivery of 113,000 units from January to September 2024, enhancing community services and increasing occupancy rates[15] - The company has conducted 1,267 community-building activities, engaging over 30,000 homeowners on-site[15] - The occupancy rate increase in major projects has positively impacted sales performance[15] - The company completed the delivery of 246 projects and 113,000 housing units in the first nine months[20] - The company signed a total of RMB 23.26 billion in bulk asset transactions from January to September, covering 41 projects across 17 cities[16] Market Conditions - The real estate market showed a 28.6% year-on-year decline in sales for the top 100 real estate companies in Q3 2024[13] - New housing supply and transaction areas in 300 cities decreased by 33.6% and 29.4% year-on-year respectively from January to September 2024[14] - The third quarter saw a 10.1% year-on-year decline in real estate development investment and a 22.2% decline in new construction area from January to September 2024[13] Financing and Investment - Short-term bank loans and financial institution borrowings surged by 109.51% to RMB 91,288,539 as of September 30, 2024, from RMB 43,572,666 at the end of 2023, reflecting changes in financing structure[4] - Financing costs increased by 31.40% to RMB 4,494,065 in the first nine months of 2024, compared to RMB 3,420,108 in 2023, due to a decrease in capitalizable interest expenses[4] - The company incurred a net cash outflow from financing activities of RMB (20,405,848) thousand for the first nine months of 2024, compared to RMB (31,334,051) thousand in the same period of 2023[38] - The company reported a significant increase in cash generated from other investment activities, amounting to RMB 9,744,850 thousand in 2024, compared to RMB 2,742,306 thousand in 2023[38] Shareholder Information - The total number of shares for the company as of September 30, 2024, is 11,930,709,471, including 9,724,196,533 A-shares and 2,206,512,938 H-shares[10] - The top 10 unrestricted shareholders include 深铁集团 with 3,242,810,791 A-shares and HKSCC NOMINEES LIMITED with 2,206,317,349 H-shares[9] - The company repurchased 72,955,992 shares, accounting for 0.61% of the total share capital[10] Revenue Segments - The real estate development business contributed RMB 173.23 billion in revenue from a settled area of 13.84 million square meters in the first nine months[18] - The property service segment achieved a total revenue of RMB 43.08 billion, reflecting a year-on-year growth of 6.3%[17] - The leasing residential business generated RMB 2.63 billion in revenue, marking a 3.7% increase year-on-year[24] - The group's commercial development and operations generated revenue of RMB 6.67 billion for the first nine months, a year-on-year increase of 1.5%, with an overall occupancy rate of 93.6%[27] - The group's logistics and warehousing business achieved revenue of RMB 2.96 billion in the first nine months, with high-standard warehouses contributing RMB 1.61 billion and cold chain revenue reaching RMB 1.35 billion, a year-on-year growth of 6.3%[30] User Engagement - The group's online platform registered a total of 4.82 million users, with 1.35 million followers on its public account as of September 30[26] - The group's commercial member count reached 40.92 million, reflecting a year-on-year growth of 23.8%[27]

vanke 萬科企業股份有限公司 (於中華人民共和國註冊成立的股份有限公司) (股份代號: 2202) 中期報告 2024 重要提示 1. 本公司董事會、監事會及董事、監事、高級管理人員保證2024年半年度報告（以下簡稱「本報告」）的 真實、準確、完整，不存在虛假記載、誤導性陳述或者重大遺漏，並承擔個別和連帶的法律責任。 2. 本報告已經公司第二十屆董事會第九次會議審議通過。所有董事均親自出席了本次董事會會議。 3. 按照國際會計準則第34號中期財務報告（「國際會計準則第34號」）編製的中期財務報告未經審計，惟 已由畢馬威會計師事務所根據香港會計師公會頒佈的《香港審閱工作準則第2410號－獨立核數師對 中期財務信息的審閱》的要求進行審閱。 4. 董事會主席郁亮先生，執行副總裁、財務負責人韓慧華女士聲明：保證本報告中財務報告的真實、 準確和完整。 5. 公司2024年半年度不派發現金紅利，不送紅股，不以公積金轉增股本。 6. 本報告中貨幣幣種未做說明均指人民幣。 7. 本報告涉及的未來計劃、發展戰略等前瞻性陳述，不構成本集團對投資者的實質承諾，敬請投資者 對此保持足夠的風險認識，理解計劃、預測與承諾之間的差異， ...

Financial Performance - China Vanke Co., Ltd. reported unaudited interim results for the six months ending June 30, 2024[1]. - The company reported a revenue of RMB 142.78 billion for the first half of 2024, a decrease of 28.93% compared to RMB 200.89 billion in the same period of 2023[12]. - The gross profit for the first half of 2024 was RMB 9.65 billion, down 74.52% from RMB 37.89 billion in the previous year[12]. - The company incurred a loss attributable to shareholders of RMB 9.85 billion in the first half of 2024, representing a decline of 199.82% compared to a profit of RMB 9.87 billion in the same period of 2023[12]. - The company's total revenue for the first half of 2024 was RMB 142.78 billion, a decrease of 28.93% year-on-year[23]. - The real estate development and related asset management revenue was RMB 123.40 billion, down 33.07% year-on-year, accounting for 86.4% of total revenue[23]. - The property services revenue increased by 13.98% year-on-year to RMB 15.99 billion, with a gross margin of 13.65%[24]. - The net asset return rate (diluted) for the first half of 2024 was -4.08%, a decrease of 8.04 percentage points from 3.96% in the same period of 2023[12]. - The company reported a net loss attributable to shareholders of RMB 9.85 billion, a significant increase of 199.8% year-on-year[23]. - The company reported a total comprehensive income for the period of RMB (8,118,635,000), down from RMB 17,669,121,000 in the previous year, reflecting a decrease of approximately 146%[127]. Dividends and Shareholder Returns - The company will not distribute cash dividends or bonus shares for the 2024 interim period[2]. - The company did not declare cash dividends or bonus shares for the first half of 2024[26]. - The company did not declare a dividend for the previous fiscal year, which was RMB 8,063,000 thousand or RMB 0.68 per share[168]. Operational Highlights - The company delivered 74,000 housing units across 169 projects in the first half of 2024, maintaining its position among the top tier in the industry[15]. - The company achieved a total transaction amount of RMB 20.4 billion in bulk asset transactions from January to July 2024, covering various asset types including commercial and long-term rental apartments[15]. - The rental housing business expanded its operational scale, adding 15,000 new units, with 80.6% located in first-tier cities, and maintaining a rental rate of 95.2%[15]. - The company launched 3 new projects in the first half of the year, with a total planned construction area of 246,000 square meters and a total land cost of RMB 1.02 billion[31]. - The company completed a construction area of approximately 8.596 million square meters in the first half of the year, achieving 39.0% of the annual plan[31]. - The company has improved community amenities in 48 major projects, resulting in an increase of approximately 14,000 households, representing a 16% rise in occupancy rates[35]. Financing and Debt Management - The company secured new financing and refinancing totaling RMB 61.2 billion in the first half of 2024, with an average cost of 3.66% for new financing[16]. - The net debt ratio as of the reporting period was 62.0%, with total interest-bearing debt amounting to RMB 331.27 billion, accounting for 23.3% of total assets[48]. - The average cost of newly added domestic financing in the first half of 2024 was 3.60%, with a weighted average debt maturity of 5.3 years for interest-bearing debt[50]. - The group achieved a net cash outflow from operating activities of RMB 5.18 billion during the reporting period, with cash and cash equivalents totaling RMB 92.4 billion as of the end of the reporting period[51]. - The company reported a total guarantee amount of RMB 60,000 million for its wholly-owned subsidiary as of June 1, 2024[93]. Market Conditions and Industry Trends - The average rental price in 50 key cities fell by 0.9% in the first half of the year, indicating a downward trend in the rental market[20]. - The total sales area of commercial housing in China decreased by 19.0% year-on-year to 480 million square meters, with sales revenue down 25.0% to RMB 4.7 trillion[17]. - The new construction area for residential properties dropped by 23.7% year-on-year to 380 million square meters, reflecting a continued decline in development investment[17]. - The average premium rate for residential land sales was 4.4%, down 2.3 percentage points year-on-year, indicating reduced competition in the land market[17]. Strategic Initiatives and Future Plans - The company plans to continue implementing its comprehensive plan focused on "ensuring housing delivery, ensuring payments, and transitioning to high-quality development" to navigate the challenging market environment[16]. - The company is focusing on strategic initiatives to enhance market expansion and product development in the upcoming periods[132]. - The company aims to reduce annual management expenses by 15% in 2024 through cost-cutting measures[58]. - The company plans to deliver 188,000 units throughout the year, focusing on high-quality delivery[56]. Sustainability and ESG Efforts - The company has established nearly 50 sustainability goals, focusing on emissions reduction, waste reduction, energy use, and climate change[70]. - The company achieved a cumulative area of 331 million square meters meeting green building standards by the end of June 2024, with 61.5% of new projects incorporating renewable energy designs[70]. - The company received multiple ESG ratings, including AA from the Shenzhen Stock Exchange and A+ from the Hang Seng ESG Index, and was recognized as the best ESG in the mainland real estate sector by Institutional Investor magazine[70]. - Vanke's green operations focus on energy and water resource efficiency, aiming to reduce resource waste across all project phases[72]. Corporate Governance and Shareholder Relations - The company maintains its independence in operations, finance, and governance, ensuring no interference from its controlling shareholder[74][75][76][77][78]. - The company will not utilize its shareholder position to infringe upon the legitimate rights and interests of minority shareholders[81]. - The company has not experienced any major litigation or arbitration matters during the reporting period[83]. - The company has not engaged in any significant non-operating related party debt transactions during the reporting period[88]. Asset Management and Transactions - The company has announced a public listing for the transfer of land use rights and related assets, with a total area of 19,227.53 square meters and a planned construction area not exceeding 167,000 square meters[85]. - The company conducted 49,000 live broadcasts and registered 149,000 customer inquiries as part of its marketing innovation efforts[27]. - The company reported a total contract costs of RMB 5,354,454 thousand, slightly up from RMB 5,281,137 thousand year-over-year[153].

Revenue Performance - Revenue for Q1 2024 decreased by 10.05% to RMB 61.59 billion compared to RMB 68.47 billion in Q1 2023[4] - Revenue for the group was RMB 61.59 billion, a decrease of 10.0% year-on-year[10] - The company's total revenue for Q1 2024 was RMB 61.594 billion, compared to RMB 68.474 billion in the same period last year[19] Net Profit and Earnings - Net profit attributable to shareholders in Q1 2024 was a loss of RMB 361.97 million, a significant decline of 125.04% from a profit of RMB 1.45 billion in Q1 2023[4] - Net profit attributable to shareholders was RMB -360 million, a decrease of 125.0% year-on-year[10] - The company's net profit attributable to shareholders for Q1 2024 was a loss of RMB 361.968 million, compared to a profit of RMB 1.445 billion in Q1 2023[19] - Basic and diluted earnings per share in Q1 2024 were both negative RMB 0.0305, a 124.40% decrease from RMB 0.1251 in Q1 2023[4] Cash Flow and Financial Position - Operating cash flow in Q1 2024 was negative RMB 9.42 billion, a 234.57% decrease from positive RMB 7.00 billion in Q1 2023[4] - Net cash used in operating activities was RMB 9,421,419 thousand for the three months ended March 31, 2024, compared to net cash generated from operating activities of RMB 7,001,301 thousand for the same period in 2023[23] - Net cash generated from investing activities was RMB 2,219,883 thousand for the three months ended March 31, 2024, compared to net cash used in investing activities of RMB 337,014 thousand for the same period in 2023[23] - Net cash used in financing activities was RMB 8,944,583 thousand for the three months ended March 31, 2024, compared to RMB 3,749,993 thousand for the same period in 2023[23] - Cash and cash equivalents decreased by 16.6% from RMB 96,942,577 thousand as of December 31, 2023, to RMB 80,822,675 thousand as of March 31, 2024[21] Assets and Liabilities - Total assets as of March 31, 2024 decreased by 2.72% to RMB 1.46 trillion compared to RMB 1.50 trillion as of December 31, 2023[4] - Total assets decreased from RMB 1,150,282,054 thousand as of December 31, 2023, to RMB 1,111,088,892 thousand as of March 31, 2024, reflecting a decline in current assets[21] - Short-term bank loans and financial institution borrowings increased by 33.44% to RMB 58.14 billion as of March 31, 2024, mainly due to growth in long-term borrowings due within one year[5] - Non-current liabilities decreased from RMB 280,153,375 thousand as of December 31, 2023, to RMB 261,979,524 thousand as of March 31, 2024[22] - Inventory and other contract costs decreased by 4.1% from RMB 706,998,914 thousand as of December 31, 2023, to RMB 677,744,790 thousand as of March 31, 2024[21] - Trade and other receivables increased by 2.2% from RMB 329,777,411 thousand as of December 31, 2023, to RMB 336,972,064 thousand as of March 31, 2024[21] Shareholders' Equity and Ownership - Shareholders' equity attributable to listed company owners decreased slightly by 0.06% to RMB 250.63 billion as of March 31, 2024[4] - Total equity decreased slightly from RMB 402,933,531 thousand as of December 31, 2023, to RMB 399,533,386 thousand as of March 31, 2024[22] - The company's net asset value decreased slightly from RMB 402,933,531 thousand as of December 31, 2023, to RMB 399,533,386 thousand as of March 31, 2024[22] - Shenzhen Metro Group remains the largest shareholder with a 27.18% stake, holding 3.24 billion shares as of March 31, 2024[7] Business Segment Performance - Real estate development business contributed RMB 46.67 billion in revenue, a decrease of 13.8% year-on-year[10] - Operating service business contributed RMB 10.95 billion in revenue, an increase of 12.0% year-on-year[10] - The rental housing business achieved revenue of RMB 833 million in Q1, a year-on-year increase of 7.3%[13] - The logistics and warehousing business generated revenue of RMB 970 million in Q1, with high-standard warehouse revenue at RMB 530 million (down 5.4% YoY) and cold chain revenue at RMB 430 million (up 10.1% YoY)[14] - The commercial development and operation business recorded revenue of RMB 2.38 billion in Q1, a year-on-year increase of 2.3%, with Yingli-managed projects contributing RMB 1.43 billion, up 4.8% YoY[16] Contract Sales and Settlements - Contract sales area was 3.911 million square meters, a decrease of 37.5% year-on-year[11] - Contract sales amount was RMB 57.98 billion, a decrease of 42.8% year-on-year[11] - Settled area was 3.182 million square meters, a decrease of 26.7% year-on-year[11] - Settled amount was RMB 46.67 billion, a decrease of 13.8% year-on-year[11] Gross Margin and Debt Ratio - Gross margin for the development business was 10.5%, a decrease of 6.7 percentage points year-on-year[10] - The company's gross profit for Q1 2024 was RMB 6.661 billion, down from RMB 10.565 billion in Q1 2023[19] - The group's debt ratio after deducting prepayments was 64.9%, a decrease of 0.6 percentage points compared to the end of 2023[10] Other Income and Asset Transactions - Other income net increased by 56.87% to RMB 2.26 billion in Q1 2024, primarily due to the impact of disposing of some investments[6] - The company completed large-scale asset transactions worth RMB 4.2 billion in Q1, including a 50% stake sale in Shanghai Qibao Vanke Plaza for RMB 2.384 billion[17] Rental Housing Business - The rental housing business added 7,121 new units and opened 3,006 units in cities like Shenzhen and Guangzhou, with a total of 238,000 units under management and an occupancy rate of 93.9%[13] Logistics and Warehousing Business - The logistics and warehousing business added 85,000 square meters of leasable area, bringing the total to 10.202 million square meters, with high-standard warehouse occupancy at 83.9% and cold chain utilization at 76.0%[14]

Financial Performance - Vanke reported no dividend distribution for the fiscal year 2023 due to the ongoing industry adjustment, requiring special resolution approval at the annual general meeting[2]. - The financial report for 2023 has been audited by KPMG, which issued a standard unqualified opinion[2]. - The board of directors confirmed the authenticity, accuracy, and completeness of the financial report for 2023[2]. - The report includes a comprehensive overview of the company's financial indicators and accounting data[3]. - In 2023, Vanke achieved a sales revenue of RMB 376.12 billion, a year-on-year decrease of 9.8%, maintaining the second position in the industry[5]. - The company reported a revenue of RMB 465.74 billion for 2023, a decrease of 7.56% compared to RMB 503.84 billion in 2022[16]. - Net profit attributable to shareholders was RMB 12.16 billion, down 46.39% from RMB 22.69 billion in the previous year[16]. - The company's operating cash flow net amount was RMB 3.91 billion, an increase of 42.24% compared to RMB 2.75 billion in 2022[16]. - The total financing obtained during the year was RMB 89.7 billion, with RMB 76.6 billion from domestic sources and RMB 13.1 billion from overseas[20]. - The asset-liability ratio, excluding pre-sale accounts, was 65.5%, a decrease of 2.1 percentage points from the end of 2022[20]. - The company maintained a cash balance of RMB 99.81 billion, sufficient to cover interest-bearing liabilities due within one year[20]. - The gross profit margin decreased significantly due to the scale of development business settlement and impairment provisions for certain projects[20]. - The weighted average return on equity was 4.91%, down from 9.48% in the previous year, reflecting the challenging market conditions[16]. - The company achieved a net profit of RMB 20.46 billion, a year-on-year decrease of 45.6%[59]. - The net debt ratio increased to 54.7%, up 11.0 percentage points from the end of 2022[60]. - Total interest-bearing debt reached RMB 320.05 billion, accounting for 21.3% of total assets[60]. - The company issued a total of RMB 10 billion in credit bonds during the reporting period, with a minimum coupon rate of 3.07% for medium-term notes[62]. - The comprehensive financing cost for new financing in 2023 was 3.61%[62]. - The company maintained an AAA credit rating from domestic rating agencies, while international ratings were downgraded due to a pessimistic outlook on the domestic real estate industry[64]. Business Strategy and Development - Vanke's future plans and development strategies are forward-looking statements and do not constitute a substantive commitment to investors[2]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, urging investors to be aware of investment risks[2]. - The company is focused on expanding its logistics and supply chain solutions through its logistics development subsidiary[4]. - Vanke is actively involved in the development of AIoT and BPaaS solutions through its technology subsidiary[4]. - The company has a strategic focus on community space services and long-term rental apartments as part of its business model[4]. - Vanke plans to reduce interest-bearing debt by over RMB 100 billion in the next two years and aims for transaction returns of no less than RMB 30 billion in 2024[6]. - The company is committed to providing high-quality products and services while maintaining positive cash flow and enhancing operational efficiency[6]. - Vanke continues to focus on urbanization and the potential demand in the real estate market, with a new urban population of nearly 12 million in 2023[6]. - The company plans to continue its strategy of integrating real estate development, operation, and services, focusing on cash flow management[20]. - The company is enhancing operational data governance to support dynamic and precise management of its assets[55]. - The introduction of AI assistants and online live streaming has improved customer engagement and lead conversion rates in property sales[55]. - The company is actively adapting to market changes by restructuring its organizational setup in southern and Shanghai regions[56]. - The company is focusing on streamlining operations and reducing management costs to support business development[79]. Sales and Revenue - Operating service revenue increased by 8.9% year-on-year to RMB 55.81 billion, with consolidated revenue rising by 13.8% to RMB 42.81 billion[5]. - The company delivered a total of 289,000 residential, apartment, and commercial units, receiving positive customer feedback[5]. - The company signed transactions worth RMB 12.3 billion in quality assets, capitalizing on opportunities in REITs and private real estate investment funds[5]. - The inventory turnover rate exceeded 60% in 2023, aided by targeted strategies for inventory sales[5]. - The total sales amount for development business reached RMB 376.12 billion, ranking second in the industry, with 289,000 units delivered and 191 batches achieving delivery and certification[21]. - The property service industry continues to maintain a high renewal rate of over 85%, despite the challenging operating environment[23]. - The company achieved operating revenue of RMB 465.7 billion, a year-on-year decrease of 7.6%[30]. - The property services segment saw revenue of RMB 29.43 billion, an increase of 14.17% year-on-year, with a gross margin of 14.96%[30]. - The company achieved operating revenue of RMB 33.42 billion in 2023, a year-on-year increase of 10.2%, with community service revenue accounting for 56.6%[45]. Project Development and Construction - The company has ongoing projects in various regions, with significant planned construction areas, including 859,085 square meters in the Beijing Changyang Peninsula project[80]. - The company has a project completion plan for 2024, including 1,284 square meters in the Beijing Cuihu International South District project[80]. - The company has a total planned construction area of 2,000,000 square meters for 2023, with 1,500,000 square meters expected to commence construction[81]. - As of the end of 2023, the company has completed construction of 1,200,000 square meters, with a reserve of 1,000,000 square meters[81]. - The company has a total planned construction area of 4,000,000 square meters for 2023, with 1,500,000 square meters completed by the end of the year[84]. - The company reported a completion area of 1,727,414 square meters for the Tianjin Dongli Lake project, which is 100% owned[84]. - The company has a total planned construction area of 3,000,000 square meters for 2023, with 1,500,000 square meters expected to be completed by the end of the year[99]. - The company has a total planned construction area of 3,200,000 square meters for 2023, with 1,200,000 square meters completed by the end of the year[100]. - The company has a total planned construction area of 3,000,000 square meters for 2023, with 1,200,000 square meters completed by the end of the year[102]. - The company has a total planned construction area of 2,500,000 square meters for 2023, with 1,200,000 square meters expected to be completed by the end of the year[103]. Market Trends and Economic Environment - The national commodity housing sales area in 2023 was 1.12 billion square meters, a year-on-year decrease of 8.5%, with sales amounting to RMB 11.7 trillion, down 6.5%[22]. - The new construction area in 2023 was 950 million square meters, a year-on-year decline of 20.4%, while real estate development investment was RMB 11.1 trillion, down 9.6%[22]. - The average premium rate for residential land transactions was 4.7%, an increase of 1.7 percentage points compared to 2022[22]. - The national retail sales of consumer goods increased by 7.2%, with significant growth in social entertainment-related categories[27]. - The new commercial opening growth rate fell to 6.8%, marking a historical low, with stock renovation accounting for 14% of the total[27]. - The cold chain logistics sector continues to grow rapidly, supported by government policies and stable demand from the food consumption industry[24]. - The rental housing market shows differentiation, with first-tier cities experiencing slight rent increases while second and third-tier cities see declines[26]. Sustainability and ESG Initiatives - The company has set nearly 50 sustainability goals, including carbon reduction and waste reduction initiatives[57]. - The company’s ESG performance received high recognition, maintaining an A+ rating from Hang Seng ESG ratings[58]. - The company has achieved over 8.6 million square meters of green building certification, with 105 projects receiving green three-star certification[47]. Customer Engagement and Satisfaction - The company’s community activities reached over 1,390 events, enhancing customer satisfaction to 94.8% and customer retention rate to 63%[48]. - The digital membership count reached 34.32 million, with monthly active members peaking at over 4.29 million, reflecting a year-on-year growth of 39.6%[50]. - The company’s self-owned customer acquisition channels accounted for over 85%, improving by 5 percentage points year-on-year[47].

Financial Performance - Revenue for 2023 reached RMB 503.8 billion, a year-on-year increase of 12.3%[2] - Net profit attributable to shareholders was RMB 22.5 billion, a decrease of 23.6% compared to the previous year[2] - Revenue for 2023 was RMB 465.74 billion, a decrease of 7.56% compared to 2022[16] - Net profit attributable to shareholders was RMB 12.16 billion, a decrease of 46.39% compared to 2022[16] - Gross profit for 2023 was RMB 67.45 billion, a decrease of 31.21% compared to 2022[16] - Net profit for the period was RMB 20.46 billion, a decrease of 45.6% year-on-year[59] - Equity net profit was RMB 12.16 billion, a decrease of 46.4% year-on-year[59] - Investment income was RMB 2.69 billion, a decrease of 34.7% year-on-year[59] - The company's return on equity (ROE) decreased by 4.57 percentage points to 4.91% in 2023[16] Asset and Liability Management - Total assets as of December 31, 2023, stood at RMB 1.9 trillion, an increase of 8.7% from the previous year[2] - The asset-liability ratio, excluding prepayments, decreased to 65.5%, down from a peak of 76% in 2018[5] - The company's asset-liability ratio decreased by 3.70 percentage points to 73.22% in 2023[16] - The net debt ratio increased by 11.05 percentage points to 54.66% in 2023[16] - The company's cash on hand was RMB 99.81 billion, covering short-term debt[20] - Total interest-bearing debt was RMB 320.05 billion, accounting for 21.3% of total assets[60] - The company's capital commitments amounted to RMB 96.22 billion, primarily for construction and land contracts[72] - Guarantees provided for customer mortgage loans totaled RMB 171.32 billion, with no significant losses historically incurred[73] Business Operations and Strategy - The company's logistics and warehousing services platform, Vanke Logistics Development Co., Ltd., continued to expand its operations[4] - The company's long-term rental apartment brand, Po Apartments, provided one-stop living solutions for urban residents[4] - The company's commercial property development and operation platform, SCPG Holdings Co., Ltd., remained a key part of its business strategy[4] - The company's AIoT and BPaaS solutions provider, Wanrui Technology, continued to innovate in the smart space services sector[4] - The company's property management services, under the brand Vanke Property, maintained a strong presence in community and commercial spaces[4] - The company's strategic focus on high-density urban areas allowed for efficient operations and economies of scale[4] - The company plans to achieve transaction repayments of no less than RMB 30 billion in 2024[6] - Over the next two years, the company aims to reduce interest-bearing debt by more than RMB 100 billion[6] - The company will continue to focus on providing high-quality products and services, maintaining its leading position in residential and community value creation[6] - The company plans to start construction and resume work on existing projects (excluding future acquisitions) with a planned new construction and resumption area of 10.718 million square meters in 2024[79] - The company expects to complete construction on projects with a total area of 22.057 million square meters in 2024[79] - Vanke plans to reduce interest-bearing debt by RMB 100 billion over the next two years and actively utilize financing tools such as operating property loans to transform its financing model[77] - The company aims to achieve a positive cash flow at the operational level and strengthen bulk and equity transactions, targeting a recovery of over RMB 30 billion to enhance financial security[77] Real Estate Development and Sales - Full-year sales revenue reached RMB 376.12 billion, a year-on-year decrease of 9.8%, maintaining the second position in the industry[5] - High-quality delivery of 289,000 residential, apartment, and commercial properties, receiving positive customer feedback[5] - Newly acquired 43 projects in 2023, with 33 achieving sales within the year, contributing RMB 51 billion in sales and an investment realization rate of 88%[5] - Inventory sell-through rate exceeded 60% in 2023, driven by product adjustments, flexible pricing, and refined management[5] - Contract sales area decreased by 6.2% to 24.66 million square meters, with contract sales value dropping by 9.8% to RMB 376.12 billion[33] - The company launched 50 new projects in 2023, achieving a 67% sell-through rate on the first day of sales[33] - Online customer acquisition through the "Share Home" tool increased by 39%, contributing to 14% of total transactions[33] - The Shanghai region accounted for 34.2% of total sales value at RMB 129.14 billion, while the Southern region contributed 23.7% at RMB 89.27 billion[34] - Settled sales area decreased by 12.9% to 29.615 million square meters, with settled sales revenue dropping by 9.6% to RMB 401.61 billion[35] - The company had 23.386 million square meters of unsold resources at the end of the reporting period, a decrease of 30.4% year-on-year[37] - Development business started and resumed construction area reached 17.063 million square meters, up 8.8% year-on-year, achieving 102.0% of the annual plan[38] - Development business completed construction area was 31.335 million square meters, down 13.7% year-on-year, achieving 97.1% of the annual plan[38] - The company acquired 43 new projects with a total planned construction area of 5.96 million square meters and a total land price of RMB 46.32 billion, with an average land price of RMB 13,899 per square meter[38] - The company delivered 289,000 residential, apartment, and commercial units across 354 projects and 742 batches[40] - The company's new projects met green building standards for the 10th consecutive year, with a cumulative area of 328 million square meters meeting green building standards, including 10.5461 million square meters meeting high-level green building standards[42] Property Services and Logistics - The company's EPC and construction agency business achieved revenue of RMB 12.31 billion in 2023, with a total of 341 projects completed and 89 projects currently under management[43] - Vanke's property service subsidiary, Wanwu Cloud, achieved revenue of RMB 33.42 billion, up 10.2% year-on-year, with community space living consumption services contributing RMB 18.93 billion, accounting for 56.6% of total revenue[45] - Wanwu Cloud's AIoT and BPaaS solution services revenue reached RMB 2.79 billion, up 16.9% year-on-year, accounting for 8.4% of total revenue[45] - Wanwu Cloud's residential property gross margin increased by 3.5 percentage points, with overall residential property gross profit up 55.5% year-on-year[45] - Wanwu Cloud's diversified business revenue reached RMB 543 million, up 107.5% year-on-year[45] - Logistics business (including non-consolidated projects) achieved operating revenue of RMB 4.18 billion, a year-on-year increase of 17.2%, with cold chain revenue (excluding supply chain business) reaching RMB 1.88 billion, up 33.9% year-on-year[46] - Vanke's logistics arm, VX Logistics, added 8 new projects with a total leasable area of 439,000 square meters, including 306,000 square meters for cold chain and 133,000 square meters for high-standard warehouses[46] - As of the reporting period, VX Logistics had a cumulative leasable area of 10.02 million square meters, with high-standard warehouses accounting for 8.52 million square meters and a stable occupancy rate of 88%, while cold chain facilities had a leasable area of 1.5 million square meters with a utilization rate of 77%[46] Rental Housing and Commercial Property - Vanke's rental housing business, PoYu, achieved revenue of RMB 3.46 billion, a year-on-year increase of 6.8%, and achieved overall profitability under the cost method[47] - PoYu managed 233,300 rental housing units by the end of 2023, with 180,100 units in operation, ranking in the top three in 24 cities including Beijing, Shenzhen, Guangzhou, Chengdu, and Wuhan[47] - PoYu's occupancy rate reached 95.76%, with a front-end GOP margin of 88.4% and a rent collection rate of 99.0%[47] - Vanke's commercial property business (including non-consolidated projects) generated revenue of RMB 9.11 billion, a year-on-year increase of 4.6%, with a rental rate of 94.8%, up 1.6 percentage points year-on-year[49] - As of the reporting period, Vanke had 203 commercial projects in operation (excluding light-asset management projects) with a total construction area of 11.58 million square meters, and 74 of these projects were managed by Yinli, covering 7.14 million square meters[49] - Vanke's commercial projects are primarily located in economically developed regions, with over 52% in the Yangtze River Delta and Pearl River Delta, 24% in first-tier cities, and over 90% in first- and second-tier cities[49] - 15 new commercial projects opened in 2023, including Chongqing Impression City with a 98.2% leasing rate and 97.2% opening rate, and Shanghai Longhua Hui with an 85% opening rate[50] - Digital membership reached 34.32 million, with monthly active members peaking at 4.29 million, a 39.6% year-over-year increase[50] - The 7th Yinhua Flower Festival boosted total sales by 30% and foot traffic by over 40% across more than 100 projects in 50 cities[50] Market and Industry Trends - National commercial housing sales area in 2023 was 1.12 billion square meters, a year-on-year decrease of 8.5%, with sales amounting to RMB 11.7 trillion, down 6.5% year-on-year[22] - National real estate development investment in 2023 was RMB 11.1 trillion, a year-on-year decrease of 9.6%[22] - The renewal rate in the property service industry remains above 85%, with over 70% of residential projects having a net profit margin between 5% and 8%[23] - In 2023, the national retail sales of consumer goods increased by 7.2% year-on-year, with categories related to social entertainment experiences showing faster growth[27] - The growth rate of new commercial openings nationwide in 2023 dropped to 6.8%, a record low, with 14% of the year's openings being renovations of existing properties[27] Financial and Operational Metrics - Operating cash flow for the year was RMB 3.91 billion, marking the 15th consecutive year of positive cash flow[5] - Operating cash flow for 2023 was RMB 3.91 billion, an increase of 42.24% compared to 2022[16] - Full-year operating cash flow reached RMB 3.91 billion, marking 15 consecutive years of positive cash flow[67] - The company held RMB 99.81 billion in cash, significantly exceeding short-term interest-bearing liabilities of RMB 62.42 billion[67] - Inventory decreased by 22.6% year-over-year to RMB 701.72 billion, with work-in-progress accounting for 69.7% of total inventory[69] - New inventory impairment provisions totaled RMB 3.49 billion, impacting net profit attributable to shareholders by RMB 2.95 billion[69] - Cross-currency swap (CCS) contracts held to hedge currency risks amounted to USD 1.0 billion, with USD 1.121 billion expiring during the reporting period[68] Financing and Debt Management - New financing obtained in 2023 was RMB 89.7 billion, with a comprehensive cost of 3.61%[20] - Domestic new financing cost in 2023 was 3.61%[62] - Total interest expense for the period was RMB 14.26 billion, with capitalized interest of RMB 9.42 billion[62] - The company issued RMB 10 billion in credit bonds, including RMB 2 billion in corporate bonds with a coupon rate of 3.10%[62] - The company has submitted 42 urban projects in 22 cities for the housing financing coordination mechanism[63] - International rating agencies downgraded the company's credit rating, with Moody's downgrading to "Ba1" and Fitch to "BB+"[64] - Shenzhen State-Owned Assets Supervision and Administration Commission expressed strong support for the company, including potential project cooperation and bond purchases[65] - The company's major shareholder, Shenzhen Metro Group, committed to subscribing to 29.75% of the total shares in the C-REIT issuance, supporting asset revitalization efforts[66] Regional and Project-Specific Updates - The company completed the transfer of the remaining 50% equity of Shanghai Qibao Vanke Plaza to Link REIT for RMB 2.384 billion, achieving a 15.7% IRR[54] - The company's REITs initiatives include the CICC Yinhua Consumption REIT, expected to raise RMB 3.26 billion, and logistics REITs under regulatory review[53] - The company's tech initiatives include enhancing data governance, improving online customer acquisition, and developing 3D modeling tools for real estate development[55] - Cumulative employee co-investment projects reached 1,214 by the end of 2023, with a co-investment amount of RMB 1.27 billion in newly acquired projects during the reporting period, accounting for 1.86% of the peak funding for co-investment projects and 3.58% of Vanke's equity funding peak[75] - Vanke's total planned construction area in the Southern Region reached 49,649,210 square meters, with a completed area of 32,587,415 square meters by the end of 2023[97] - In the Shanghai region, the Shanghai Anting New Town project has a planned construction area of 504,437 square meters, with 460,205 square meters completed by the end of 2023[97] - The Zhuhai City Seasons project in the Southern Region achieved a completed area of 68,788 square meters by the end of 2023, with a planned completion area of 40,419 square meters for 2024[97] - The Shanghai Sky City project in the Shanghai region completed 72,701 square meters by the end of 2023, with a total planned construction area of 367,777 square meters[97] - The Jiangmen Vanke Golden City Central Garden project in the Southern Region has a planned construction area of 92,222 square meters, with 90,796 square meters completed by the end of 2023[97] - The Shanghai Longhua project in the Shanghai region completed 18,675 square meters by the end of 2023, with a planned completion area of 22,358 square meters for 2024[97] - The Zhuhai Star Coast Garden project in the Southern Region achieved a completed area of 32,598 square meters by the end of 2023, with a planned completion area of 11,280 square meters for 2024[97] - The Shanghai Qibao 19-04 plot in the Shanghai region has a planned construction area of 99,000 square meters, with 24,750 square meters started in 2023[97] - The Jiangmen Golden City Purple Garden project in the Southern Region completed 53,821 square meters by the end of 2023, with a total planned construction area of 54,033 square meters[97] - The Shanghai Man City project in the Shanghai region completed 150,695 square meters by the end of 2023, with a total planned construction area of 566,942 square meters[97]

Core Viewpoint - Vanke Enterprises (02202) announced the issuance of $630 million 5.35% medium-term notes due in 2024, with a total repayment amount of $647 million including interest by the maturity date [1] Group 1 - The medium-term notes will mature on March 11, 2024 [1] - The company has deposited a total of $647 million into a designated bank account for the repayment of the principal and interest of the notes [1] - The notes are issued by Vanke's wholly-owned subsidiary, Vanke Property (Hong Kong) Co., Ltd. [1]

Core Viewpoint - The recent notification from the financial regulatory authorities and the People's Bank of China regarding the management of operational property loans is a significant positive development for leading real estate companies, allowing them to use commercial properties as collateral to improve liquidity and avoid asset fire sales [1][2]. Group 1: Company Challenges - Vanke faced liquidity issues and debt repayment concerns despite reporting a revenue of 89.42 billion yuan and a net profit of 3.75 billion yuan in its Q3 financial report [1]. - Fitch Ratings downgraded Vanke's long-term foreign currency issuer default rating from "BBB+" to "BBB," reflecting market concerns over its financial stability [1]. - Wanda's owner, Wang Jianlin, sold four Wanda Plazas due to ongoing debt issues, indicating the financial strain on major real estate firms [1][2]. Group 2: Policy Support for Real Estate Companies - The recent notification opened four key avenues for financing, allowing real estate companies to use operational properties as collateral, extend loan terms from 10 to 15 years, and increase the loan-to-value ratio from 60% to 70% [2]. - The total new financing scale for listed real estate companies with significant operational property holdings is expected to exceed 500 billion yuan, providing much-needed liquidity for firms like Vanke and Wanda in 2024 [2][3]. Group 3: Market Implications - The management's proactive measures to address liquidity issues are seen as crucial for restoring market confidence in the real estate sector, which has been plagued by debt crises and stalled projects [2][5]. - The financial support for real estate companies is essential for ensuring the completion of ongoing projects and reviving consumer confidence in the housing market [3][5]. - The central bank's commitment to providing financial support signals a potential recovery for the real estate market, with expectations of improved conditions in 2024 [5].