China Vanke Co., Ltd Class A · SZSE:000002
China Vanke Co., Ltd Class A — FY2022 Earnings Presentation
48 slides from China Vanke Co., Ltd Class A's earnings presentation, Mar 31, 2023
Slide 1: China Vanke 2022 Annual Results Announcement
CHINA VANKE CO., LTD. (000002.SZ, 2202.HK) 2022 ANNUAL RESULTS ANNOUNCEMENT March 31st 2023 www.vanke.com
Slide 2: Contents
Contents Part 1 Results Overview Part 2 Financial Overview Part 3 Business Overview Part 4 Action Plans Part 5 Appendix
Slide 3: Results Overview
Contents Part 1 Results Overview
Slide 4: Results Overview
Results Overview 4 • The operating income reached RMB503.84 billion, a YOY growth of 11.3%. • The net profit attributable to equity holding amounted to RMB22.62 billion, a YOY Stabilization of performance increase of 0.4%. • In 2022, the Group maintains compliance with the “green category” requireme
Slide 5: Financial Overview
Contents Part 2 Financial Overview
Slide 6: Summary of key accounting data and financial indicators
6 Summary of key accounting data and financial indicators Profit 损益情况 and Loss 单位 Account unit 2021年 2022 20200年 2021 Change 变动 Revenue RMB hundred million 5,038.4 4,528.0 11.3% Gross margin (before tax) % 19.6% 21.8% -2.2pct Gross margin (after tax) % 14.7% 17.2% -2.5pct Profit for the year RMB hun
Slide 7: Maintained an industry-leading credit rating
Maintained an industry-leading credit rating 7 The Group's credit rating is industry-leading. Rating BBB+ from S&P, BBB+ from Fitch, Baa1 from Moody, AAA from CCXR, with the "three red lines" indicators meeting the "green category" requirements. The net gearing ratio has remained low for a long
Slide 8: Optimized interest-bearing liabilities structure
8 Optimized interest-bearing liabilities structure • The total interest-bearing liabilities amounted to RMB314.11 billion, among them the interest-bearing liabilities without any pledge or mortgage accounted for 95.2%. • The interest-bearing liabilities due within one year amounted to RMB64.52 billi
Slide 9: Maintaining a wide range of financing channels and low financing cost
9 Maintaining a wide range of financing channels and a low-level financing cost in the industry • To enhance the Company's ability to avert financial risks, the Group continued to optimize its debt structure and reduce financing costs through financing instruments including corporate bonds and mediu
Slide 10: Business Overview
Contents Part 3 Business Overview
Slide 11: Development business: sales amount reached RMB416.97 billion
11 Development business: sales amount reached RMB416.97 billion, ranking 11 Top 3 in 44 cities ◆ Sales amount reached RMB416.97 billion, a YOY decrease of 33.6% ◆ The floor area of newly started projects is 15.68 million m², completed 81.7% of the target set up at the beginning of the year ◆ Complet
Slide 12: Development business: settlement area and revenue increased
Development business: settlement area and revenue increased 12 12 ◆ The Group realized an settlement area from real estate development business of 34.014 million square meters (+9.1%), and booked revenue of RMB444.4 billion (+10.5%). Revenue from EPC and agent construction over RMB10 billion. ◆ The
Slide 13: Development business: follow strict investment standards
13 Development business: follow strict investment standards to guarantee 13 investment quality ◆ Carefully selected projects with stable regional market Top 10 cities in the scope of new land reserve in 2022 and high-quality operating income Planned estimated Land acquisition City GFA cost(RMB hundr
Slide 14: Development business: enhance customer experience
Development business: enhance customer experience at all stages including 14 sales, 14 construction, delivery, residential services, etc. ◆ Through the simplification of contracting process by technology, about 56,000 groups of customers signed home purchase contracts through the online simplified p
Slide 15: Development business: property delivery and quality control
15 Development business: conducting property delivery smoothly and steadily, continuous strengthening of safety and quality control ◼ Over 340,000 housing units were successfully delivered throughout the year. ◼ Project quality receive high recognition, 10 projects win prestigious construction award
Slide 16: Rental housing: No.1 in China in business scale
16 Rental housing: No.1 in China in terms of business scale and operational efficiency ◼ Maintain industry-leading management scale • Operating income (including non-consolidated projects) totaled RMB3.24 billion, up 12.1% YoY. • Newly obtained 17,700 rooms, with a net of 7,100 rooms unveiled. By th
Slide 17: Rental housing: subsidized rental housing
17 Rental housing: proactively promote the construction and operation of subsidized rental housing • The scale of government-subsidized rental housing is in the forefront of the industry: in response to the national policy, completed 66 projects in 14 cities such as Beijing, Tianjin, Shenzhen and Xi
Slide 18: Rental housing: large-scale rental community projects
18 Rental housing: large-scale rental community projects are becoming mature In November 2022, the first phase of Yuan Er Cao Qiao Community Store, Vanke's collective land project in Beijing, was unveiled, making it the forth large rental community of the Yuan Er line in operation in Beijing. Despit
Slide 19: Rental housing: serve corporate customers
19 Rental housing: serve corporate customers in depth and build a new reputation for rental services ◼ Significant increase in the number of cooperative enterprise and their share in occupancy • In China, Port Apartment has cooperated with 2,936 corporate clients, the percentage of whom has increase
Slide 20: Onewo: spin-off listing in HKEX, revenue exceeded 30 billion
20 Onewo: completed spin-off listing in HKEX with revenue exceeded 30 billion for the first time ◼ Robust revenue growth Revenue in all regions • Onewo achieved a revenue of RMB30.32 billion, an increase of 26.1% YOY; The revenue 303.2 of community space residential consumption service reached RMB16
Slide 21: Onewo: residential properties high-quality service
21 Onewo: residential properties stay committed to high-quality service Continues to provide stable, reliable, high-quality and well-received services • Vanke Service is present in 149 cities nationwide, focusing on 50 first- and second-tier cities (including Hong Kong) and serving 4,358 residenti
Slide 22: Onewo: commercial corporate and urban services
22 Onewo: commercial corporate and urban services expanded rapidly Cushman & Wakefield Vanke Service: focus on the Internet, high-end manufacturing, finance and strategic emerging industries, total of 2,133 projects were served, the services scope has gradually expanded to energy management, dust-
Slide 23: Onewo: core technology products
23 Onewo: continues to build core technology products, aiming to increase technology revenue Empowered by technology, Onewo continues to improve its space service capability, and has launched 29 product lines, nearly 140 technology products, and over 14 smart space solutions. In 2022, Onewo beca
Slide 24: Logistics and warehousing: operating income increased by 17.9%
24 Logistics and warehousing: operating income increased by 17.9%，the scale of cold chain ranked first in China ◆ Operating income maintained rapid growth，cold chain Revenue business continues to lead • Revenue (including non-consolidated projects) totaled RMB3.56 billion, up by 17.9% YOY, +17.9% of
Slide 25: Logistics and warehousing: deepen service and competitiveness
25 Logistics and warehousing: continuously strengthen the depth of service, 25 enhance the competitiveness of operation services ◆ Deep involvement in customer supply chain management and continuous improvement of customer stickiness • Walmart: we serve 176 Walmart stores and 250,000 members of Sam'
Slide 26: Project showcase: Shanghai Fengxian Lingang Park
26 Project showcase: Shanghai Fengxian Lingang Park: provides an integrated supply chain solution for the fruit industry VX Shanghai Fengxian Lingang Park Break bulk cross- Zero-wait warehouse Cross docking Artificial docking receiving and shipping Artificial ripening ripening Expiry Expiry manageme
Slide 27: Commercial business: steady increase for revenue
27 Commercial business: steady increase for revenue, continuous output management ◼ Steady increase for revenue • Commercial business (including non-consolidated projects) generated operating income of RMB8.72 billion, a YOY increase of 14.3%, of which RMB5.48 billion was generated from commercial p
Slide 28: Retail property development and operations: integrate business resources
28 Retail property development and operations: integrate business resources within the group to improve operation quality Integrate business resources within the group • For the intensive use of resources involved in projects with similar characteristics in Hangzhou Olympic In-City the same region
Slide 29: Retail: overview of projects opened in 2022
Retail development and operation: quick overview of projects opened in 2022 29 25 retail projects opened as scheduled, with a construction area of 918,000 square meters. The overall indicators met expectations and were well received by consumers. Qingdao Future City Vanke Plaza Nanning Changhong Roa
Slide 30: Hotels and resorts: public services for winter sports
30 Hotels and resorts: improving public services for winter sports ◼ Winter resorts: • The Yanqing Olympic Park was opened to the public during the snow season of 2022-2023. The Group manages 6 ski resorts with a total area of 340 hectare of 102 ski trails under the management, the total length of w
Slide 31: Hotels and resorts: culture and tourism resources
31 Hotels and resorts: developing culture and tourism resources to provide better products and services ◼ Hotel business: • The group has 33 hotels in operation in key cities such as Shenzhen, Guangzhou, Suzhou and Hangzhou, as well as tourist cities like Huangshan and Lijiang. • The joint venture p
Slide 32: Technology empowers business: management and business improvement
Technology empowers business: management and business improvement32 32 Strengthen data application in smart systems for higher efficiency and better management 崔筱盼2.0 Digital Employee • Integrate data from various areas such as finance, capital, cost, marketing, Cui Xiaopan2.0 engineering, empower
Slide 33: ESG: industry-leading and highly-recognized performance
ESG: industry-leading and highly-recognized performance 33 ◆ Recognized as excellent ESG practice by professional Industry-leading ESG Ratings institutions in China and abroad • One of the 2022 Best 30 ESG practice cases of A-share listed companies selected by the China Association for Public Compan
Slide 34: ESG: industry-leading green building practice
ESG: industry-leading green building practice and pursuing the sustainable 34 business philosophy ◆ Green building • All the newly constructed projects have met green building standards for 9 consecutive years. As of December 31, 2022, Vanke's accumulated GFA in line with green building standards ex
Slide 35: ESG: supporting rural vitalization and education
ESG: supporting rural vitalization and educational development encouraging 35 citizens to run for health and fun ◆ Rural and education revitalization Rural revitalization • In 2022, Vanke continued to support rural revitalization in ethnic minority areas in Guangdong Province, following up on the Mu
Slide 36: Action Plans
Contents Part 4 Action Plans
Slide 37: 2023 Outlook
37 2023 Outlook In 2023, the Group will focus on the following aspects: ◆ First, ensure operational safety, maintain industry-leading credit ratings, sustain financing flexibility, continue to optimize our debt structure, and uncover opportunities in equity financing to foster healthy business growt
Slide 38: 2023 Outlook (Continued)
38 2023 Outlook (Continued) Property development：co-ordinate the development and operation business through the headquarters of development and operation, and lay a stable foundation for project operation to establish a mechanism for sharing capabilities, unified standards and lean management in res
Slide 39: 2023 Outlook (Continued)
39 2023 Outlook (Continued) Rental housing: expand management scale and improve management level Respond positively to the balanced approach between rental and for-sale housing, continue to expand the management scale of rental housing business. According to market characteristics of different cit
Slide 40: 2023 Outlook (Continued)
40 2023 Outlook (Continued) Logistics and warehousing: improve the layout of warehouse network and strengthen the construction of channels Focus on the cold chain and increase investment in core cities, and improve the layout of warehouse network nationwide. Based on customer demand, we continue t
Slide 41: Appendix
Contents Part 5 Appendix
Slide 42: Condensed Consolidated Statement of Profit or Loss
Appendix: Condensed Consolidated Statement of Profit or Loss 42 42 For the year ended 31 December 2022 2022 RMB’000 2021 RMB’000 Revenue 503,838,367 2021 RMB’000 2020 RMB’000 452,797,774 Cost of revenue (405,784,703) (357,106,481) Gross profit 98,053,664 95,691,293 Other net income 9,903,438 6,724,0
Slide 43: Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
Appendix: Condensed Consolidated Statement of Profit or Loss and other43 43 Comprehensive Income For the year ended 31 December 2022 2022 RMB’000 2021 RMB’000 2021 RMB’000 2020 RMB’000 Profit for the year 37,550,909 38,069,527 Other comprehensive income for the year (after tax and reclassification a
Slide 44: Condensed Consolidated Statement of Financial Position
Appendix: Condensed Consolidated Statement of Financial Position 44 44 As at 31 December 2022 31 December 2022 31 December 2021 RMB’000 RMB’000 Non-current assets 2021 RMB’000 2020 RMB’000 Property, plant and equipment 35,133,670 32,631,565 Investment properties 119,407,195 108,521,492 Intangible as
Slide 45: Condensed Consolidated Statement of Financial Position
Appendix: Condensed Consolidated Statement of Financial Position 45 45 As at 31 December 2022 31 December 2022 31 December 2021 RMB’000 RMB’000 Non-current liabilities 2021 RMB’000 2020 RMB’000 Bank loans and borrowings from financial institutions 180,773,281 154,322,279 Bonds payables 68,815,570 53
Slide 46: Condensed Consolidated Cash Flow Statement
Appendix: Condensed Consolidated Cash Flow Statement 46 46 For the year ended 31 December 2022 2022 RMB’000 2021 RMB’000 Operating activities 2021 RMB’000 2020 RMB’000 Cash generated from operations 40,089,968 41,072,096 Income Tax paid (37,339,518) (36,958,935) Net cash generated from operating act
Slide 47: Condensed Consolidated Cash Flow Statement
Appendix: Condensed Consolidated Cash Flow Statement 47 47 For the year ended 31 December 2022 2022 RMB’000 2021 RMB’000 Financing activities 2021 RMB’000 2020 RMB’000 Capital element of lease rentals paid (1,505,959) (1,310,726) Interest element of lease rentals paid (980,908) (1,112,014) Capital c
Slide 48: Thanks
THANKS！ IMPORTANT NOTICE： The content of this material is extracted from Vanke's 2022 Annual Report. If there is any discrepancy, please refer to the annual report Vanke Vanke IR E-house Weekly Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen www.vanke.com 0755-25606666 IR@van