Financial Performance - In 2021, Vanke Group experienced a decline in net profit for the third time in its 31-year history, following declines in 1995 and 2008[7]. - The proposed cash dividend for 2021 is RMB 11,276,621,873.75, accounting for 50.06% of the net profit attributable to shareholders[3]. - The total number of shares for dividend calculation is 11,625,383,375, resulting in a cash dividend of RMB 9.70 per 10 shares[3]. - In 2021, the company's revenue was CNY 452.8 billion, a year-on-year increase of 8.0%, while net profit attributable to shareholders was CNY 22.5 billion, a decline of 45.7%[8]. - The overall gross margin decreased to 21.8%, down 7.4 percentage points year-on-year, with a total gross profit reduction of CNY 17.6 billion[8]. - Investment income fell by CNY 6.9 billion due to reduced returns from equity investments and asset disposals[8]. - The company's cash flow from operating activities saw a significant decline of 92.27% compared to the previous year[19]. - The net profit attributable to shareholders decreased by 45.75% to approximately ¥22.5 billion in 2021[19]. - The company maintained a net debt ratio of 29.7%, which is low compared to industry standards[30]. - Total interest-bearing debt was CNY 265.96 billion, an increase of 2.9% year-on-year, with long-term debt proportion rising to 78%[30]. - The cash coverage ratio for short-term debt was 2.5 times, improving by approximately 0.2 times from the end of 2020[30]. - The company emphasizes the importance of maintaining a healthy financial status as a bottom-line goal[16]. Strategic Goals and Future Plans - The company aims to stabilize revenue and net profit in 2022, laying the groundwork for future value growth[7]. - The company aims to strengthen cash flow management and optimize debt structure and financing costs in 2022[16]. - The residential property revenue is expected to grow by 25%, while other segments like logistics and commercial operations are also projected to expand significantly[17]. - The company plans to enhance operational efficiency and competitiveness in its service business to support overall profit margins[16]. - The company aims to transition from a "good residential supplier" to an "urban service provider" over the next decade, focusing on property services, logistics, long-term rental apartments, and commercial sectors[12]. - The company plans to enhance its investment quality by focusing on stable markets and strengthening post-investment management practices[94]. - The company intends to expand its service projects to 100 cities by the end of 2022, leveraging its "Wanwuyun City" model[96]. - The company plans to start construction on 19.201 million square meters of new projects in 2022, with an expected completion area of 38.995 million square meters[100]. - The company plans to maintain a leading position in the cold chain industry by improving service efficiency and quality[97]. Operational Performance - The company achieved operating revenue of CNY 452.8 billion in 2021, representing a year-on-year growth of 8.0%[29]. - The company recorded a sales area of 38.08 million square meters and a sales amount of 627.78 billion yuan, representing declines of 18.4% and 10.8% respectively[41]. - The company’s real estate development business generated settlement revenue of 402.27 billion yuan, an increase of 6.6% year-on-year, with a settlement gross margin of 23.0%[43]. - The company achieved a net operating cash inflow of CNY 4.11 billion, marking 13 consecutive years of positive cash flow[83]. - The company has established a strong competitive position in the cold chain storage sector, leading the industry with a total managed area of 1.136 million square meters[14]. - The company has engaged in urban renewal projects, including the transformation of old factories into innovation parks and cultural districts, actively participating in city renewal initiatives[47]. Market Conditions and Challenges - The company recognizes the need for improved operational efficiency and management capabilities in response to increasing market competition[10]. - The total area of newly started residential construction decreased by 11.4% year-on-year, indicating a slowdown in the real estate market[31]. - The average premium rate for residential land transactions was 11%, down 4 percentage points from the previous year[31]. - The logistics industry saw a 12.5% increase in total social logistics costs, reaching CNY 16.7 trillion in 2021[33]. - The company is optimistic about the long-term recovery of the real estate market, supported by government policies aimed at stabilizing the sector[11]. Shareholder Engagement and Governance - The company emphasizes the importance of addressing shareholder concerns and criticisms following the disappointing financial results[7]. - The financial report for 2021 has been audited by KPMG Huazhen and received a standard unqualified opinion[2]. - The report has been prepared in accordance with the Shenzhen Stock Exchange's disclosure requirements[3]. - The company is focused on enhancing internal controls and risk management as part of its governance report[2]. - The report includes forward-looking statements regarding future plans and strategies, which do not constitute a commitment to investors[3].

Financial Performance - The company reported a mid-year financial report for the six months ending June 30, 2021, prepared in accordance with International Accounting Standard 34, which has not been audited but reviewed by KPMG[4]. - The company did not declare any dividends or bonus shares for the mid-year period[4]. - The company’s total revenue for the first half of 2021 was RMB 50 billion, representing a year-on-year increase of 15%[6]. - The net profit attributable to shareholders for the same period was RMB 10 billion, reflecting a growth of 20% compared to the previous year[6]. - The company achieved a revenue of RMB 167.11 billion for the first half of 2021, representing a year-on-year increase of 14.19%[24]. - The net profit attributable to shareholders was RMB 11.05 billion, a decrease of 11.68% compared to the same period last year[24]. - The basic earnings per share were RMB 0.95, down 14.08% year-on-year[24]. - The gross profit margin decreased to 18.22%, down 5.92 percentage points from the previous year[26]. - The net asset return rate (fully diluted) was 4.98%, a decrease of 1.41 percentage points compared to the same period last year[24]. - The group achieved a net profit of RMB 16.17 billion, a year-on-year decrease of 13.2%, and a net profit attributable to shareholders of RMB 11.05 billion, down 11.7%[62]. - The gross profit margin for real estate development and related asset management was 18.0%, a decrease of 6.02 percentage points compared to the same period in 2020[62]. Business Strategy and Expansion - The company plans to expand its logistics business unit, aiming for a 25% increase in operational capacity by the end of 2022[8]. - The company is investing in new technology development, with a budget allocation of RMB 1 billion for research and innovation in smart home solutions[8]. - The company has restructured its regional business groups to enhance operational efficiency, now comprising seven distinct business groups[8]. - The company is exploring potential mergers and acquisitions to strengthen its market position, particularly in the real estate sector[8]. - The company has set a performance guidance for the full year 2021, targeting a revenue growth of 10% to 15%[8]. - The company emphasizes the importance of risk management in its future strategies, particularly in light of market volatility[8]. Real Estate Development - The real estate development business generated a revenue of RMB 144.33 billion, accounting for 86.36% of total revenue[19]. - The total contracted sales area for real estate development was 21.92 million square meters, an increase of 5.5% year-on-year, with a sales amount of RMB 354.43 billion, up 10.6%[27]. - The real estate development revenue for the first half of the year was RMB 155.87 billion, with a year-on-year increase of 11.9%, and the average settlement price was RMB 12,940 per square meter[32]. - The company reported a net profit of RMB 13.08 billion, with the Shanghai region accounting for 32.01% of the total profit[32]. - The company has 53.77 million square meters of sold but unrecognized resources, with a total contract value of approximately RMB 78.19 billion, reflecting a year-on-year growth of 9.3%[33]. - New construction area decreased by 4.8% to 17.48 million square meters, while completed area increased by 14.0% to 12.25 million square meters[33]. - The company acquired 95 new projects with a total planned construction area of 15.06 million square meters, at an average land price of RMB 7,480 per square meter[35]. - The total area of projects under construction and planned is approximately 160.66 million square meters, with 112.83 million square meters currently under construction[35]. - The company is involved in several urban renewal projects, with a total area of approximately 3.40 million square meters under its rights[35]. - The company has a diverse project portfolio, including developments in cities like Changsha, Dongguan, and Fuzhou, with varying equity ratios[36]. - The company maintains a focus on rational investment, ensuring project quality while moderately supplementing project resources[35]. - The company has ongoing projects with significant equity ratios, such as Zhuhai Qinao Legend at 93.7% and Hangzhou Heyu Guangnianfu at 99.8%[37]. - The company is focusing on high-value projects, such as the Wuxi Xizhang No. 8 project with a planned construction area of 199,508 square meters[39]. - The company is committed to sustainable development, with projects like the Tianjin Vanke Ecological Light emphasizing environmental considerations[39]. - The company’s project in Changchun, the Sunflower Town, has a planned construction area of 351,791 square meters, reflecting its ambition in urban development[39]. Property Services and Revenue - Vanke's property service revenue reached RMB 10.38 billion in the first half of 2021, representing a year-on-year growth of 33.3%[44]. - Residential property service revenue accounted for RMB 5.71 billion, making up 55.0% of total revenue[44]. - The company has expanded its property services to 3,490 projects across 105 major cities, including Hong Kong[44]. - The rental housing business, with a total of 192,000 units, achieved a revenue of RMB 1.319 billion, representing a year-on-year growth of 25.6% and an occupancy rate of 95%[47]. - The commercial business segment reported a revenue of RMB 3.629 billion, a year-on-year increase of 19.0%, with an overall occupancy rate of 92.3%[52]. - The logistics segment achieved a revenue of RMB 1.34 billion, reflecting a significant year-on-year growth of 64%, with high-standard warehouses generating RMB 920 million in revenue[55]. Financial Management and Debt - The company’s net debt ratio stood at 20.2%, with cash and cash equivalents amounting to RMB 195.22 billion, significantly exceeding the total interest-bearing liabilities due within one year of RMB 84.3 billion[19]. - The total interest-bearing debt amounted to RMB 268.71 billion, an increase of RMB 10.19 billion from the beginning of the year, accounting for 13.7% of total assets[64]. - The cash inflow from operating activities was RMB 6.78 billion, with cash and cash equivalents totaling RMB 195.22 billion, significantly exceeding current liabilities of RMB 84.30 billion[66]. - The inventory value at the end of the reporting period was RMB 1,055.61 billion, an increase of 4.7% from the end of 2020[68]. - The group provided guarantees for mortgage loans totaling approximately RMB 210.63 billion, with no significant losses incurred from these guarantees[68]. Corporate Governance and Compliance - The company has established an independent financial accounting department and management system to ensure financial independence from its controlling entities[95]. - The company ensures that all assets related to its operations are independently owned and controlled, complying with regulations from the China Securities Regulatory Commission[101]. - The company commits to prioritizing the interests of the listed company and its subsidiaries in case of potential conflicts due to industry competition, especially while holding at least 20% voting rights in Vanke[103]. - The company will strictly adhere to legal and regulatory requirements in related party transactions, ensuring the independence of the listed company in assets, finance, personnel, and operations[104]. - There were no significant related party transactions during the reporting period, including daily operations and asset or equity acquisitions[111]. - The company reported no major litigation or arbitration matters during the reporting period[109]. - The company and its largest shareholder, Shenzhen Metro Group, have not failed to fulfill court judgments or defaulted on significant debts during the reporting period[109]. Sustainability and Social Responsibility - Vanke achieved a MSCI-ESG BBB rating and was included in the Hang Seng ESG 50 index, reflecting its commitment to sustainable development and corporate social responsibility[92]. - The company donated RMB 200 million during the 630 poverty alleviation event in Guangdong Province, supporting ethnic minority areas and rural revitalization efforts[93]. - Vanke has been actively promoting industrialized construction, reducing energy and material consumption, and has been refining its "5+2" construction system over nearly 20 years[92]. - Eight projects received three-star green building certification, nine projects achieved LEED Gold certification or above, and six projects obtained national healthy building certification during the reporting period[92]. - Vanke is committed to building a green supply chain, integrating environmental principles into supplier management, and promoting green supply chain actions across the real estate industry[92]. Shareholder Information - As of June 30, 2021, the total number of shares issued by the company was 11,625,383,375, with 83.64% being RMB ordinary shares and 16.30% being overseas listed foreign shares[132]. - The total number of shareholders as of June 30, 2021, was 571,126, with 27.63% held by Shenzhen Metro Group[136]. - The company completed the issuance of 7,651,174 new H-shares in August 2021, increasing the total number of H-shares to 1,901,186,842[132]. - The company reported a decrease of 33 million shares held by Shenzhen Metro Group during the reporting period[136]. - The company’s total number of shares with limited sale conditions remained unchanged at 6,643,268[133]. - The total number of shares outstanding as of June 30, 2021, is 11,617,732,201, comprising 9,724,196,533 A shares and 1,893,535,668 H shares[140]. - The largest shareholder, Shenzhen Railway Group, holds 3,209,810,791 A shares, representing 33.01% of the total issued A share capital[142]. - The company has no controlling shareholder or actual controller, and this situation remains unchanged during the reporting period[141].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 167.11 billion, representing a 14.19% increase compared to CNY 146.35 billion in the same period of 2020[14]. - Operating profit decreased by 17.23% to CNY 21.99 billion from CNY 26.56 billion year-on-year[14]. - Total profit fell by 16.52% to CNY 22.08 billion, down from CNY 26.45 billion in the previous year[14]. - Net profit attributable to shareholders was CNY 11.05 billion, a decrease of 11.68% from CNY 12.51 billion in the first half of 2020[14]. - Basic and diluted earnings per share both decreased by 14.08% to CNY 0.95 from CNY 1.11[14]. - The comprehensive diluted return on equity decreased by 1.41 percentage points to 4.98% from 6.39%[14]. - The weighted average return on equity also decreased by 1.65 percentage points to 4.79% from 6.44%[14]. - The company achieved operating revenue of CNY 167.11 billion in the first half of 2021, representing a year-on-year increase of 14.2%[22]. - The net profit attributable to shareholders was CNY 11.05 billion, a decrease of 11.7% compared to the same period last year[22]. - The company reported a net profit of 16.17 billion yuan, a year-on-year decrease of 13.2%, with a diluted return on equity of 4.98%[58]. Cash Flow and Liquidity - The net cash flow from operating activities dropped significantly by 70.00% to CNY 6.78 billion, compared to CNY 22.61 billion in the same period last year[14]. - The company reported an operating cash inflow of 6.78 billion yuan, with cash holdings of 195.22 billion yuan, significantly exceeding short-term liabilities[64]. - Cash flow from operating activities generated a net amount of CNY 6.78 billion, significantly lower than CNY 22.61 billion in the first half of 2020, marking a decline of about 70%[192]. - The company’s financial expenses decreased to CNY 1.43 billion from CNY 2.87 billion in the same period of 2020, indicating a reduction of approximately 50%[187]. - The company maintained a loan repayment rate of 100% during the reporting period[159]. Assets and Liabilities - The company's total assets reached CNY 1.96 trillion, an increase of 4.59% from the beginning of the year[22]. - The total liabilities amounted to CNY 1.59 trillion, reflecting a growth of 4.74% year-to-date[22]. - The net debt ratio increased to 20.21%, up 2.12 percentage points from the previous period[22]. - The total liabilities as of June 30, 2021, amounted to ¥1.59 trillion, an increase of 4.93% from ¥1.52 trillion at the end of 2020[178]. - The total assets as of June 30, 2021, were ¥1.95 trillion, up from ¥1.87 trillion at the end of 2020, reflecting a growth of 4.59%[178]. Real Estate Development - The real estate development business accounted for 86.36% of total revenue, with a revenue of CNY 144.33 billion[22]. - The company sold 21.92 million square meters of real estate, achieving a contract sales amount of CNY 354.43 billion, a year-on-year increase of 10.6%[29]. - The total area of real estate development business settled was 11.154 million square meters, representing a year-on-year increase of 6.2%[34]. - The gross profit margin for settled business was 24.9%, with a net profit margin after tax and additional charges of 19.6%[34]. - The average price of residential sales in the first half was CNY 16,200 per square meter, reflecting market conditions[29]. Investment and Projects - The company acquired 95 new projects with a total planned construction area of 15.059 million square meters, with a total land price of CNY 112.63 billion[37]. - The total building area of ongoing and planned projects was approximately 160.659 million square meters, with ongoing projects accounting for about 112.833 million square meters[38]. - Vanke's projects under construction include 141,601 square meters in Hangzhou and 336,243 square meters in Nanjing, with a total of 1,200,000 square meters planned across various locations[40]. - The company is actively pursuing new developments, with multiple projects in the early stages across various cities, including a 286,866 square meters project in Tianjin[41]. Corporate Governance and Compliance - The company did not declare any cash dividends or bonus shares for the first half of 2021[4]. - The company has not engaged in any significant related party transactions during the reporting period[109]. - The financial report for the first half of 2021 has not been audited, and the company has not received any non-standard audit reports[104]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[106]. - The company guarantees that all assets related to its operations are independently owned and controlled by the listed company[99]. Sustainability and Social Responsibility - The company is committed to sustainable development and has been researching industrialized construction for nearly 20 years[90]. - The company donated 200 million yuan to support poverty alleviation and rural revitalization efforts in Guangdong Province[93]. - Eight projects received three-star green building certification, nine projects received LEED Gold certification or above, and six projects received national healthy building certification during the reporting period[91]. - The company has implemented health standards in 98.6% of new projects since the introduction of its health housing baseline standards in 2020[92]. Shareholder Structure and Investor Relations - As of June 30, 2021, the total number of shares issued by the company was 11,617,732,201, with 83.64% being RMB ordinary shares and 16.30% being overseas listed foreign shares[133]. - The company held multiple investor meetings and conference calls in April, May, and June 2021, engaging over 50 investment firms[130]. - The largest shareholder, Deep Rail Group, held 3,209,810,791 shares, representing 27.63% of the total share capital[142]. - The company’s shareholder structure includes a significant portion of foreign investment, with 16.30% of shares held by overseas investors[133].

Financial Performance - Total revenue for 2020 reached RMB 419.11 billion, an increase of 13.92% compared to RMB 367.89 billion in 2019[19]. - Gross profit for 2020 was RMB 120.58 billion, a decrease of 8.79% from RMB 132.20 billion in 2019[19]. - Net profit attributable to shareholders for 2020 was RMB 41.52 billion, up 6.80% from RMB 38.87 billion in 2019[19]. - Operating cash flow for 2020 was RMB 53.19 billion, representing a 16.42% increase from RMB 45.69 billion in 2019[19]. - Basic earnings per share for 2020 were RMB 3.62, a 4.52% increase from RMB 3.47 in 2019[19]. - Total current assets at the end of 2020 were RMB 1.55 trillion, a 7.53% increase from RMB 1.44 trillion at the end of 2019[19]. - Total equity attributable to shareholders increased by 19.38% to RMB 224.51 billion at the end of 2020 from RMB 188.06 billion at the end of 2019[19]. - The company achieved a net profit of RMB 59.3 billion, representing a year-on-year growth of 7.6%[105]. - The gross profit margin for real estate and related businesses was 22.6%, a decrease of 4.6 percentage points compared to 2019[105]. - The company’s net debt ratio stood at 18.1% as of the end of 2020[106]. - The total interest-bearing debt amounted to RMB 258.53 billion, accounting for 13.8% of total assets[107]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 14,522,165,251.25, accounting for 34.98% of the annual net profit attributable to shareholders for 2020[3]. - The total number of shares for dividend distribution is based on 11,617,732,201 shares, resulting in a cash dividend of RMB 12.5 per 10 shares[3]. Real Estate Market Trends - The real estate industry saw a national commodity housing sales growth of 8.7% in 2020 despite the pandemic[9]. - The introduction of the "three red lines" policy in August 2020 marks a shift from the financial dividend era to the management dividend era in the real estate sector[9]. - The management dividend era emphasizes the need for companies to focus on quality growth rather than mere scale expansion[10]. - Companies are required to develop comprehensive capabilities and unique competitive advantages to survive in the increasingly competitive environment[10]. Risk Management - The financial report has been audited by KPMG, which issued a standard unqualified opinion[3]. - The board of directors guarantees the authenticity, accuracy, and completeness of the financial report[3]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[3]. - The report details the main risks faced by the company and the corresponding countermeasures[3]. Business Strategy and Future Outlook - The company aims to adapt to changing market demands and leverage technology for future growth opportunities[13]. - The focus on urban development and resource optimization is expected to drive future business strategies[13]. - The company emphasizes the importance of understanding customer needs to capture market opportunities effectively[12]. - The company is positioned as a "rural-urban construction and life service provider," focusing on long-term market value maximization[31]. - The company aims to enhance its market competitiveness by focusing on quality growth and cash flow-based value creation, aligning with its strategic positioning as a "provider of urban and rural construction and living services"[133]. Project Development and Construction - The company has multiple ongoing projects in Dongguan and Foshan, with completion rates ranging from 18.2% to 100% across various developments[140][141]. - The company has a total of 40 projects under development, with a significant focus on the Foshan region, which includes projects like Foshan Xijiangyue and Foshan Meili City, with completion areas of 291,378 sqm and 332,272 sqm respectively[143]. - The company has a total planned area of 3,108,146 square meters for the Hangzhou Liangzhu Cultural Village project, with a completion area of 1,850,482 square meters by the end of 2020[153]. - The company plans to start new construction on an area of 31.48 million square meters and complete projects covering 35.88 million square meters in 2021[136]. - The company has a total of 1,200,000 square meters of planned construction area across various projects, with significant projects including the Ningbo Zhenhai Camel Project at 375,417 square meters and the Taizhou Wanke City at 467,994 square meters[163]. Technology and Innovation - The company has achieved 100% coverage of smart construction sites during the year[98]. - The company is focusing on AI technology to enhance business operations, including full coverage of AI review and cash flow management[137]. - The company has allocated a budget of $200 million for research and development in new technologies aimed at improving construction efficiency and sustainability[184]. - The company introduced the "Stardust System" to enhance operational efficiency and became one of the first enterprises to pilot digital currency transactions for property fees[63]. Market Expansion and Strategic Partnerships - The company is actively pursuing market expansion and collaboration opportunities to strengthen its competitive position[137]. - The company has identified potential merger opportunities with local developers to strengthen its market position and operational capabilities[184]. - The company established strategic partnerships to expand its service offerings, including a collaboration with Hikvision to focus on security technology and maintenance services[63].