VANKE(HK:02202)2022-04-21 08:35Financial 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[8]. - The proposed cash dividend for 2021 is RMB 11,276,621,873.75, accounting for 50.06% of the annual net profit attributable to shareholders[2]. - Each shareholder will receive RMB 9.70 per 10 shares as a cash dividend, subject to adjustments based on changes in total shares before the dividend record date[2]. - The financial report for 2021 has been audited by KPMG, which issued a standard unqualified audit opinion[2]. - In 2021, the company's operating 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 decrease of 45.7%[9]. - The overall gross margin decreased to 21.8%, down 7.4 percentage points year-on-year, with the gross profit margin after deducting operating taxes dropping from 22.8% in 2020 to 17.2%, corresponding to a gross profit decrease of CNY 17.6 billion[9]. - Investment income fell by CNY 6.9 billion due to reduced equity method investment returns and related gains from equity transfers[9]. - The operating cash flow turned negative, with a net cash flow from operating activities of RMB 4.1 billion, a decline of 92.27% year-on-year[24]. - The company achieved a total revenue of RMB 452.8 billion in 2021, representing an 8.04% increase compared to 2020[24]. - Net profit attributable to shareholders decreased by 45.75% to RMB 22.5 billion, down from RMB 41.5 billion in 2020[24]. - The company maintained a healthy financial status with a net debt ratio of 29.7%, which is low compared to industry standards[31]. Business Strategy and Future Outlook - Vanke aims to stabilize revenue and net profit in 2022, laying the groundwork for future value growth[8]. - The company emphasizes the importance of addressing shareholder concerns and expectations following the disappointing financial results[8]. - Vanke is committed to taking decisive actions to improve performance and rectify shortcomings identified in the past year[8]. - The company has identified property services, logistics, long-term rental apartments, and commercial operations as key new business directions for future growth[13]. - The company aims to transition from a "good residential supplier" to an "urban supporting service provider" over the next decade[12]. - The company anticipates that the future housing demand will shift towards improvement and renewal needs, despite the end of rapid industrialization and urbanization[11]. - The company plans to enhance cash flow management and optimize debt structure and financing costs to ensure financial stability in 2022[17]. - Vanke plans to achieve a 25% growth in residential property revenue and a 35% increase in Vanke Liangxing's revenue in 2022[18]. - The company plans to focus on enhancing operational capabilities across its development, management, and service sectors to drive future growth[30]. Operational Performance - The company has maintained positive operating cash flow for 13 consecutive years, with the comprehensive financing cost reduced to 4.11% by year-end[9]. - The property development segment recorded sales of RMB 627.8 billion, while recognized revenue was RMB 402.3 billion[29]. - The average rental rate for managed properties reached 95.3%, with a significant increase in property service revenue growth of 32.1%[30]. - The company expanded its rental housing business to 33 cities, with a total of 159,500 units opened and an average occupancy rate of 95.3%[28]. - The logistics and warehousing segment reported a stable rental rate of 93% for high-standard warehouses by the end of 2021[29]. - The company achieved operating revenue of RMB 452.8 billion in 2021, representing an 8.04% year-on-year growth[38]. - The gross profit margin for settled real estate development was 23.0%, with a net profit margin of 17.8% after tax deductions[46]. - The company has 46.735 million square meters of sold but uncompleted resources, with a total contract amount of approximately RMB 710.8 billion, an increase of 1.8% compared to the previous year[48]. Risk Management - The report outlines the main risks faced by the company and the corresponding countermeasures[3]. - The company has recognized a total impairment of RMB 3.53 billion, which included inventory impairment of RMB 3.12 billion and other asset impairment of RMB 410 million, resulting in a reduction of net profit by approximately RMB 2.55 billion[43]. - The company is confident in the market recovery, supported by government policies aimed at stabilizing the real estate market[11]. New Business Developments - The new business "Wanwu Cloud" achieved revenue exceeding CNY 20 billion in 2021, representing a year-on-year growth of 32.1%[14]. - Vanke Logistics achieved a compound annual growth rate (CAGR) of 52% over the past three years, with 2021 revenue reaching RMB 3.2 billion, a year-on-year increase of 69%[15]. - The rental area managed by Vanke Logistics is 11.36 million square meters, with cold chain storage accounting for 1.38 million square meters, ranking first in the industry[15]. - Vanke's apartment business reported a CAGR of 40% over the past three years, with 2021 revenue growing by 14% year-on-year to RMB 525 million, and a net operating income (NOI) increase of 193%[15]. - In 2021, Vanke's revenue from the commercial management segment grew by 24% year-on-year, with an NOI increase of 17%[15]. Corporate Governance and Social Responsibility - The company is committed to maintaining a leading credit rating and adhering to financial safety measures in its operations[17]. - The company implemented a "Chief Customer Officer" mechanism to enhance customer service and improve the living experience for residents across 42 cities, involving 356 projects and completing 1,210 improvement initiatives[52]. - The company organized over 1,030 community activities during the pandemic, engaging nearly 35,000 customers[65]. - The company has received multiple awards for engineering quality, including the "Luban Award" and the "Zhan Tianyou Award" for several projects[54]. - The group will continue to practice ESG principles, aiming for LEED Gold or Green Three-Star standards in new cold storage projects[104].