China Vanke Co., Ltd Class A · SZSE:000002
China Vanke Co., Ltd Class A — FY2023 Earnings Presentation
45 slides from China Vanke Co., Ltd Class A's earnings presentation, March 2024
Slide 1: 2023 Annual Results Announcement
2023 Annual Results Announcement March 2024
Slide 2: Contents
CONTENTS 01 Results Key Points 02 Financial Review 03 Business Review 04 Priorities for 2024
Slide 3: 1. Results Key Points
CONTENTS 1. Results Key Points
Slide 4: Results Key Points
4 Cost of newly acquired Debt-to-asset ratio after Operating cash flow onshore financing Average debt maturity deduction of advance receipts Positive for 15 3.61% 5.14 years Increased by 0.35 years from the 65.5% consecutive years Down 2.1pct from the beginning of Down 27bp from the previous year pr
Slide 5: 2. Financial Review
CONTENTS 2. Financial Review
Slide 6: Net Profit Attributable to Equity Shareholders
Net Profit Attributable to Equity Shareholders 6 ⚫ Net profit attributable to shareholders‘ equity amounted to 12.16 billion yuan，down by 46.4% YoY。 The primary reasons for this decline were the reduced settlement size and gross margin of development business, as well as the impairment provisions ma
Slide 7: Revenue and Gross Profit Margin
Revenue and Gross Profit Margin 7 ⚫ The group‘s overall operating revenue was 465.74 billion yuan, down by 7.6% year-on-year. Among the business segments, revenue and gross profit margin from the development business declined, while property management services and operational business revenues were
Slide 8: Revenue and NOI from Operational Business
Revenue and NOI from Operational Business 8 ⚫ Operational businesses maintained industry leadership in their respective fields, with continuous growth in revenue and NOI. Operating business revenue (including non-consolidated projects) reached 22.4 billion yuan, up by 8.4% YoY. Net Operating Income
Slide 9: Robust Financial Position
Robust Financial Position 9 ⚫ Net operating cash flow stayed positive for 15 years in a row. Net operating cash flow for the whole year stood at RMB 3.91 billion, which is an increase of RMB 3.67 billion from the third quarter, up RMB 1.16 billion from the year of 2022. ⚫ Cash on hand is RMB 99.81 b
Slide 10: Strong Support from Financial Institutions
Strong Support from Financial Insitutions 10 ⚫ Enhanced interaction and communication with financial institutions. Proactively interacted with financial institutions and investors, and dynamically adjusted financing strategy to secure extensive support. Newly acquired financing of RMB 89.7 billion f
Slide 11: Improving Debt Structure
Improving Debt Structure 11 Total amount of interest-bearing debt reached RMB 320.05 billion. Debt structure further improved with offshore debt down to less than 20%, percentage of short –term debt to total debt reduced to 19.5%, and debt maturity increasing from 4.79 years by the end of 2022 to 5.
Slide 12: 3. Business Review
CONTENTS 3. Business Review
Slide 13: Development Business: Sales Volume Ranks 2nd in the Industry
Development Business: 13 Sales Volume Ranks 2nd in the Industry with a Leading Collection Ratio Sales Sales of Key Projects Ranked among top 3 • No.7 for sales volume in the Sales volume industry: RMB 12 billion in 35 cities for sales RMB 376.12 billion volume （-9.8%） • No.1 for sales of units and f
Slide 14: Development Business: Product Line Development and Quality Completions
Development Business: 14 Fruitful Product Line Development with Stable and Quality New Completions ⚫ “Shi Series” is an integrated residential upgrade product series developed and implemented in 2021, and completed initial implementation in Shanghai, Hangzhou and Chengdu, product iteration in Ningbo
Slide 15: Development Business: Improved Post-Delivery Customer Experience
Development Business: Improved Post-Delivery Customer Experience and 15 Increased Occupancy Rate for Large Residential Projects ⚫ Stable delivery: Completed quality delivery of over 289,000 units of dwellings, commercial properties, and offices throughout the year, and realized ownership certificate
Slide 16: Development Business: Increasing Sales Rate and Improving Resource Structure
Development Business: Increasing Sales Rate and Improving Resource Structure 16 ⚫ Desirable sales rate of newly opened projects. Opened 50 projects for sale throughout the year, which contributed RMB 70.6 billion in sales revenue with a first-day sales rate of 67%. Among them, 13 projects achieved a
Slide 17: Development Business: High-quality Precision Investment
Development Business: High-quality Precision Investment with an 88% 17 Investment Fulfillment Rate Focusing on regions with real demand Case——Beijing Donglu ⚫ Acquired 43 new projects with new projects in Beijing, Shanghai, Hangzhou and Chengdu accounting for nearly 40% of new • Applied product modu
Slide 18: Development Business: Improving Development Efficiency in Completed Housing Sales
Development Business: Improving Development Efficiency and Fostering 18 Leading Advantages in Completed Housing Project Sales Improved efficiency through product design, engineering, and process optimization. It took only 12.3 months and 14.5 months for Hainan Jinse Licheng and Hainan Gongyuanli aff
Slide 19: Development Business: EPC and Construction Management Business
Development Business: Strengthening the Advantages of EPC and 19 Construction Management Business ⚫ Our key clientele comprises government agencies, financial institutions, high-tech enterprises, among others. Project types range from schools, affordable housing, industrial facilities, urban revital
Slide 20: Onewo: Implementing Onewo Strategy for Core Business Growth
Onewo: Implementing Onewo Strategy for Robust Core Business Growth 20 Onewo Revenue RMB 33.42 billion (+10.2%) Residential property service projects Community space residential Commercial and urban 3,810 AIoT and BPaaS solutions consumption services space integrated services Revenue Revenue Revenue
Slide 21: Onewo: Commercial & Enterprise Services Focused on Industry Customers
Onewo: Commercial & Enterprise Services Focused on 21 Industry Customers for Stable Growth ⚫ Commercial property services expanded five-segment customer base with a saturated revenue up 51.7% YoY; ⚫ Increased contractual projects by 398 within the year based on excellent market service and developme
Slide 22: Onewo: Harnessing Technology to Enhance Service Quality
Onewo: Harnessing Technology to Enhance Service Quality 22 ⚫ The impact of technology products has been substantial. Leveraging technologies, we have elevated the quality of our professional services across residential, commercial, and urban domains. In 2023, our Pineapple No.1 property self-service
Slide 23: Residential Housing: Industry-leading Scale and Operational Efficiency
Residential Housing: Industry-leading Scale and Operational Efficiency 23 The largest portfolio of centralized apartments in China Customer acquisition costs declining Percentage of owned corporate served 5,000 corporate clients, representing 233.3k 180.1k 31 147 channel customer 23% of our overall
Slide 24: Rental Housing: Diversifying Product Portfolios and Multi-brand Growth
Rental Housing: 24 Diversifying Product Portfolios and Shaping a Multi-brand Growth Strategy Rental housing designed for comfortable living Xiamen Guanyinshan Flagship Store | 825 rooms Family-oriented apartments offered by 36 projects across 15 cities. Occupancy rate 99% Kunming Jinan Beijing Zijin
Slide 25: Rental Housing: Expanding Services to the Real Economy
Rental Housing: Expanding Services to the Real Economy and Enhancing 25 Collaboration and Support for Corporate Clients ⚫ Through innovative initiatives such as the "Flexible Lease Term" model, implementation of the KA manager system, strategic cultivation of corporate clients, and the establishment
Slide 26: Logistics & Warehousing: Cold chain business continues to lead
Logistics & Warehousing: Cold chain business continues to lead with 26 sustained and steady growth in operating revenue Growth in unveiled projects Stable occupancy rate • We currently operate and manage 162 projects across 47 cities, with a • The occupancy rate of high-standard warehouses during th
Slide 27: Logistics & Warehousing: Enhancing Operational Service Competitiveness
Logistics & Warehousing: Continuously Enhancing Operational Service 27 Competitiveness and Elevating Customer Service Quality ⚫ In the end consumer market of the cold chain, we serve prominent players in chain stores of supermarket, restaurant chains, fruit and vegetable, and other related industrie
Slide 28: Logistics & Warehousing: VX Cold Chain Xinqiao Park
Logistics & Warehousing: Establishing an Operation and Distribution Center 28 for Supermarket and Catering Clientele - VX Cold Chain Xinqiao Park ⚫ Located in Shanghai, VX Cold Chain Xinqiao Park is positioned as an operation and distribution center designed for supermarket and catering clients. Pro
Slide 29: Retail Property Development and Operations: Asset-Heavy and Light Co-Development
Retail Property Development and Operations: Prioritizing Areas with 29 Potential for Asset-Heavy and Light Co-Development Growth in occupancy rate and revenue Focus on regions with growth potential ⚫ The total revenue (including non-consolidated items) reached RMB ⚫ The cumulative opening area total
Slide 30: Retail Property Development and Operations: Cultivating Top-tier Strength
Retail Property Development and Operations: Focusing on Commercial 30 Development and Operations to Cultivate Top-tier Strength 1. Leading management scale • 11 million+ m² of commercial space under management 3. Customized product development • 200+ projects under management • Deep dive into local
Slide 31: Retail Property Development and Operations: Newly Opened Projects
Retail Property Development and Operations: Newly Opened Projects 31 Received Positive Feedback and Existing Projects Improved Operations ⚫ In 2023, we launched 15 commercial projects, ⚫ We enhance project performance and reputation through garnering positive reception from consumers due to refined
Slide 32: Offices: Fostering High-Quality Office Assets
Offices: Fostering High-Quality Office Assets with Robust Operations 32 ⚫ Prioritize robust operations and efficiency. We serve customers primarily from the modern service, financial, and technology sectors across key cities like Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Hangzhou. Among o
Slide 33: Hotels & Resorts: Stronger Brand Influence
Hotels & Resorts: Stronger Brand Influence of Hotels and Snow Parks 33 • Operating 33 hotels across key cities like Beijing, Shenzhen, Guangzhou, Chengdu, and tourist hotspots such as Yangshuo and Lijiang, we‘ve introduced two proprietary brands.“Zhanyun” caters to discerning business travelers, whi
Slide 34: Operational Business Has Implemented a Closed-Loop Business Model
Operational Business Has Implemented a Closed-Loop Business Model 34 Achieved breakthrough in public REITs issuance Progress in PE funds The value of our operational assets is widely acknowledged, and bulk asset transactions are • CICC-SCPG consumption-related REIT, valued at • Established the CCB-V
Slide 35: Fostering Strategic Partnerships Across Industry Scenarios
Fostering Strategic Partnerships, Showcasing Versatile Expertise Across Various Industry 35 Scenarios, and Securing Sustainable Business Growth Through Comprehensive Capabilities ⚫ Shenzhen SASAC and major shareholders offered steadfast support to Vanke. Shenzhen SASAC‘s positive stance played a piv
Slide 36: Recognized for Strong ESG Performance and Green Practices
推进绿色建造 Recognized for Strong ESG Performance, Actively Pursuing Green and Low- 36 Carbon Practices, and Maintaining Sustainable Operations Industry-leading ESG ratings Sustainalytics Hang Seng Sustainability Index SCSE CNI ESG MSCI-ESG Low risk A+ AAA BBB Top-rated real estate developer with continu
Slide 37: IV. Priorities for 2024
CONTENTS IV. Priorities for 2024
Slide 38: Priorities for 2024
Priorities for 2024 38 I. Uphold the safety bottom line • Sustain the outperformance of our development business against the market, securing a positive cash flow for operations. • Strengthen bulk trading and equity transactions, collecting over 30 billion yuan to reinforce our safety cushion. II. P
Slide 39: Appendix
CONTENTS Appendix
Slide 40: Appendix: Condensed Consolidated Statement of Profit or Loss
40 Appendix: Condensed Consolidated Statement of Profit or Loss For the year ended 31 December 2023 Jan – Dec 2023 Jan – Dec 2022 2021 RMB’000 RMB’000 2020 RMB’000 RMB’000 Revenue 465,739,077 503,838,367 Cost of revenue (398,290,869) (405,784,703) Gross profit 67,448,208 98,053,664 Other net income
Slide 41: Appendix: Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
41 Appendix: Condensed Consolidated Statement of Profit or Loss and Other 41 Comprehensive Income For the year ended 31 December 2023 2021 RMB’000 Jan – Dec 2023 RMB’000 2020 RMB’000 Jan – Dec 2022 RMB’000 Profit for the year 20,455,558 37,612,559 Other comprehensive income for the year (after tax a
Slide 42: Appendix: Condensed Consolidated Statement of Financial Position
42 Appendix: Condensed Consolidated Statement of Financial Position 42 As at 31 December 2023 31 December 2023 31 December 2022 RMB’000 RMB’000 Non-current assets Property, plant and equipment 2021 RMB’000 38,332,903 2020 RMB’000 35,133,670 Investment properties 128,215,536 119,407,195 Intangible as
Slide 43: Appendix: Condensed Consolidated Statement of Financial Position
43 Appendix: Condensed Consolidated Statement of Financial Position 43 As at 31 December 2023 31 December 2023 31 December 2022 RMB’000 RMB’000 Non-current liabilities 2021 RMB’000 2020 RMB’000 Bank loans and borrowings from financial institutions 197,764,143 180,773,281 Bonds payables 59,871,016 68
Slide 44: Appendix: Condensed Consolidated Cash Flow Statement
44 Appendix: Condensed Consolidated Cash Flow Statement 44 For the year ended 31 December 2023 Jan – Dec 2023 Jan – Dec 2022 RMB’000 RMB’000 Operating activities 2021 RMB’000 2020 RMB’000 Cash generated from operations 33,712,517 40,089,968 Income Tax paid (29,800,194) (37,339,518) Net cash generate
Slide 45: Thanks!
THANKS！ Vanke Vanke IR E-house Weekly IMPORTANT NOTICE： The content of this material is extracted from Vanke's 2023 Annual Report. If there is any discrepancy, please refer to the annual report Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, China www.vanke.com 0755-25606666