VANKE(02202)2024-03-28 14:13Financial 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]