VANKE(HK:02202)2021-09-15 08:39Financial 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].