China Vanke Co., Ltd Class A · SZSE:000002
China Vanke Co., Ltd Class A — H1 2024 Earnings Presentation
47 slides from China Vanke Co., Ltd Class A's earnings presentation, August 2024
Slide 1: 2024 Interim Results Announcement
CHINA VANKE CO.,LTD. （000002.SZ, 2202.HK） 2024 Interim Results Announcement August 2024 www.vanke.com 1
Slide 2: I. Overall Work Plan
I. Overall Work Plan
Slide 3: Industry transformation and the comprehensive package plan
The industry is undergoing a transformation in supply and demand dynamics and is shifting from traditional to new development models. The company is encountering challenges unique to this stage and must address risks, guarantee quality housing delivery, and transition from the longstanding high leve
Slide 4: II. Key Initiatives and Achievements in 2024H1
II. Key Initiatives and Achievements in 2024H1 1. Key Initiative 1 — Ensuring High-Quality Housing Delivery 2. Key Initiative 2 — Ensuring Repayment of Debt 3. 2024H1 Results Overview
Slide 5: Key Initiative 1 — Ensuring High-Quality Housing Delivery
1. Key Initiative 1 — Ensuring High-Quality Housing Delivery
Slide 6: Ensuring High-Quality Housing Delivery
Ensuring High-Quality Housing Delivery • In 2024H1, the company completed 169 projects in 262 batches, delivering 74,000 housing units on schedule and with high quality, of which 62,000 were residential properties. • In 2024H1, 48 significant projects aimed at enhancing • Construction site dynamic v
Slide 7: Key Initiative 2 — Ensuring Repayment of Debt
2. Key Initiative 2 — Ensuring Repayment of Debt 2.1 Initiative 1: Proactively Enhancing Sales and Cash Collection 2.2 Initiative 2: Maximizing Utilization of Existing Resources 2.3 Initiative 3: Vigorously Advancing Bulk Transactions and REITs Issuances, achieving Contract Sales of 20.4 Billion Yua
Slide 8: Initiative 1: Proactively Enhancing Sales and Cash Collection
Initiative 1: Proactively Enhancing Sales and Cash Collection ◼ Continue to engage proactive sales. In 2024H1, sales amounted to 127.33 billion, sustaining a leading position in the industry and securing a Top 3 ranking in 37 cities. Achieved sales collection approached 130 billion yuan, maintaining
Slide 9: Initiative 2: Maximizing Utilization of Existing Resources
Initiative 2: Maximizing Utilization of Existing Resources ◼ Diversified Approaches to Revitalize Challenging Development Projects Case - Shenyang Yinyue • Since 2023, the company has revitalized and optimized resources with a total • Revitalization Strategy: Acquire projects by exchanging existing
Slide 10: Initiative 3: Bulk Transactions and REITs Issuances
Initiative 3: Vigorously Advancing Bulk Transactions and REITs Issuances, Achieving Contract Sales of 20.4 Billion Yuan ◼ As the end of July, achieved asset transactions sales of 20.4 billion yuan (including SCPG asset transactions and REIT issuances). • In February, 50% equity of Qibao Vanke Plaza
Slide 11: Measure 4: Transforming the Financing Model
Measure 4: Continuously Transform the Financing Model and Ensure Smooth Financing Channels ◼ In 2024H1, new financing and refinancing amounting to 61.2 billion yuan(a total of 52.4 billion in debt was paid in 2024H1 ) was secured at a comprehensive cost of 3.66%, with the onshore financing cost at 3
Slide 12: Outcome: Public Debt Obligations Met on Schedule
Outcome: Public Debt Obligations Were Met and Paid on Schedule, with interest-paying debt in the consolidated statement combined with supply chain financing fell by 17.2 billion yuan ◼ From January to July, public debt payments totaled 2024 Public Debt Maturities and Repayment 17.7 billion • 3 offsh
Slide 13: 3. 2024H1 Results Overview
3. 2024H1 Results Overview
Slide 14: Performance Overview
Performance Overview • Operating revenue was RMB 142.78 billion yuan Operating Revenue and Net - The operating revenue of property development business was 111.68 billion yuan Profit Attributable to - Non-real estate business operating revenue was 31.10 billion yuan Shareholders of the Parent Compan
Slide 15: Reasons for Financial Loss
Reasons for Financial Loss ① The Settlement Scale and Gross Profit Margin of Real Estate Development Projects Decreased Significantly. - Settlement revenue from development business was 111.68 billion yuan, a decrease of 34.6% YoY - Gross profit margin of development business settlement was 6.8%, a
Slide 16: Net Profit Attributable to Equity Holders vs Minority Interests
Factors Contributing to the Disparity Between Net Profit Attributable to Equity Holders and Profit or Loss Attributable to Minority Interests ◼ In every collaborative endeavor, the listed company and its partners maintain equal voting rights and experience similar levels of profit return fluctuation
Slide 17: III. Enhancing Business Capabilities for High-Quality Growth
III. Enhancing Business Capabilities for High-Quality Growth
Slide 18: Business Overview
Business Overview Development Business: Sales Maintain Property Management Business: Operating Top-Tier Position Revenue Growth • Development Business Sales: 127.33 • Onewo revenue reached 17.63 billion yuan, billion yuan, maintaining top-tier position marking a 9.5% increase YoY. • Collection Rate
Slide 19: Development Business: Integrated Community Product Line
Development Business: Evolving Integrated Community Product Line and Accelerating Mature Product Adoption "Shi Series" Upgraders • Fostering a community with human touch, where "arriving home marks the start of a holiday, and home embodies the true essence of life." "Yingxiang Series" Upgraders • Fo
Slide 20: Development Business: Integrated Residential Product Modules
Development Business: Advancing Innovation in Integrated Residential Product Modules to Enhance Customer Living Experience ◼ The company implemented internal and external modular "box" concepts (including commercial marketplaces, community reception areas, learning spaces, and fitness centers) in 7
Slide 21: Shanghai Columbia Circle Phase II Project
Development Business: Deep Engagement in Urban Renewal, Cultivating City-Scale Placemaking Capabilities Shanghai Columbia Circle Phase II Project is set to be completed and launched within 2024H1. Spanning a management area of 24,000 ㎡, the project features office spaces, commercial areas, as well a
Slide 22: Prudent Spending and Precise Investment
Development Business: Adhering to Prudent Spending and Precise Investment to Ensure Investment Realization Investment Performance of New Projects ◼ In 2024H1, the newly acquired land totaled RMB 1.02 billion. ◼ From 2022 to the present, there have been 82 investment projects, 52 of which are proacti
Slide 23: Exploring New Growth Models: Cutting-Edge Product R&D
Development Business: Exploring New Growth Models ——Strengthening Cutting-Edge Product R&D ◼ Shanghai NEXUS marks the inaugural project of the "Future City Ideal Unit". In 2024H1, residents had the opportunity to access 4 major city-level public amenities before moving in: Spring Bizzar, New Exhibit
Slide 24: Deepening the Ready-built Property Sales Model
Development Business: Actively Exploring New Growth Models ——Deepening the Implementation of Ready-built Property Sales Model ◼ It has established a comprehensive process for the development and sale of ready-built properties, through approaches including front-end product design, lean engineering p
Slide 25: Enhancing Customer Experience Throughout the Lifecycle
Development Business: Enhancing Customer Experience Throughout the Lifecycle with Quality Service ◼ Commitment to “Excellent Service” Across the Customer Lifecycle: Focusing on Home Delivery: We organize 'Community and Social Activities' to allow customers to experience the neighborhood's pleasant a
Slide 26: Leading Construction Management Services in Industry
Development Business: Exploring New Growth Models ——Leading Construction Management Services in Industry ◼ Vanke's construction management business engages in diverse project types on a large scale, demonstrating leading service capabilities across various business scenarios. Its deliver services to
Slide 27: Rental Housing: Enhancing Operational Efficiency
Rental Housing: Enhancing Operational Efficiency, Optimizing Customer Structure ◼ Improved Operational Efficiency ◼ Ensuring High-Quality Launch of Key Projects • The rental housing business (including non-consolidated projects) achieved • A project launch work mechanism was established. In operatin
Slide 28: Rental Housing: Expanding Managed Asset Scale
Rental Housing: Expanding Managed Asset Scale, Consolidating Leading Advantage ◼ Scale Continues to Expand, Solidifying Market Leadership Business Scale Maintains a • The management scale is 242,000 rooms while the opening Leading Position scale stands at 183,000 rooms, representing the largest 242,
Slide 29: Rental Housing: Enhancing Product and Service Quality
Rental Housing: Enhancing Product and Service Quality to Meet Diverse Customer Needs ◼ Establishing Product Advantages, Perfecting ◼ Continued Improvement for Service ◼ Providing Rental Housing Services with Complementary Offerings Quality Human Touch • Establishing Product Advantages and Community
Slide 30: Onewo: Three Major Strategies to Achieve Business Growth
Onewo: Three Major Strategies to Achieve Business Growth ◼ Steady Revenue Growth Implementing Technology Strategy to Enhance Spatial Efficiency • Onewo reported a total operating revenue of RMB 17.63 billion, marking a 9.5% • A total of 3,125 units of Pineapple No. 1 property convenience service YoY
Slide 31: Onewo: Old Community Renovation Benchmarks
Onewo: Creating Benchmarks for Old Community Renovation, Partnering with Communities, and Enhancing Asset Value ◼ Case Study: Nanjing Binjiang ✓ In-house Renovation Team and Multiple ✓ Boosting Project Quality, Forging New Funding Sources to Create Benchmarks for Market Expansion Capabilities Aochen
Slide 32: Onewo: Serving High-quality Customers
Onewo: Dedicated to Serving High-quality Customers by Exploring Customer Needs and Providing a Comprehensive Range of Services ◼ Case Study: Serving High-Quality Client "iFLYTEK" • In the Anhui region, Onewo coordinated resources, conducted thorough research on iFLYTEK and confirm the collaboration.
Slide 33: Commercial Business: Revenue Growth, Stable Occupancy
Commercial Business: Revenue Growth Achieved, Occupancy Rates Remain Stable ◼ Steady Revenue Increase Projects in Operation A total of 197 projects are in • Commercial operations (including non-consolidated projects) achieved operating revenue of RMB 4.59 billion, a YoY increase of 6.7%. Among them,
Slide 34: Commercial Business: New Project Launches
Commercial Business: Ensuring Smooth Launch of New Projects, Enhancing Performance of Existing Properties In 2024H1, 3 commercial projects—Shanghai Xuhui Vanke Mall and Shanghai Pufa Sanlin Inreach, along with Hefei Shushan Inlane—were inaugurated as planned. Spanning a total GFA of 177,000 ㎡, these
Slide 35: Logistics and Warehousing: Cold Chain Leadership
Logistics and Warehousing: Maintaining Leadership in Cold Chain Operations ◼ Revenue Continues to Grow Logistics Warehousing Revenue (100 million yuan) • Operating revenue (including non-consolidated projects) was 1.94 18.6 19.4 19.4 billion yuan, a flat YoY growth, among which, cold chain logistics
Slide 36: Logistics and Warehousing: Enhancing Customer Retention
Logistics and Warehousing: Enhancing Operational Services to Boost Customer Retention ◼ Integrated Warehouse-Distribution Logistics: Driving Cost Savings and Efficiency for Clients • VX Logistics capitalizes on its extensive warehouse network to centralize a diverse range of full- category, multi-te
Slide 37: Commitment to Sustainable Growth: Enhancing ESG Performance
Commitment to Sustainable Growth: Continuously Enhancing ESG Performance ◼ The company's ESG performance has repeatedly gained external recognition, with multiple ESG index ratings and awards ranking No.1 in the industry. ◼ Committed to sustainable development and green building practices, new proje
Slide 38: IV. 2024H2 Work Priorities
IV. 2024H2 Work Priorities
Slide 39: 2024H2 Work Priorities
2024H2 Work Priorities In the future, the company will continue to firmly implement its "comprehensive" plan, focusing on three main objectives: "ensuring housing delivery, ensuring repayment, and transitioning to high-quality development." ◼ Ensuring high-quality housing delivery: The company is fu
Slide 40: 2024H2 Work Priorities
2024H2 Work Priorities To tackle current severe operational challenges and adapt to the industry's new landscape, we'll implement stricter measures to streamline operations and boost cost-efficiency in the second half of this year. These measures include: ◼ Revamping Organizational Structure: Stream
Slide 41: Appendix
Appendix
Slide 42: Condensed Consolidated Statement of Profit or Loss
Appendix: Condensed Consolidated Statement of Profit or Loss 42 For the period ended 30 June 2024 Jan – Jun 2024 Jan – Jun 2023 2021 RMB’000 RMB’000 2020 RMB’000 RMB’000 Revenue 142,778,764 200,892,590 Cost of revenue (133,124,838) (163,003,306) Gross profit 9,653,926 37,889,284 Other net income 232
Slide 43: Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
Appendix: Condensed Consolidated Statement of Profit or Loss and Other 43 Comprehensive Income For the period ended 30 June 2024 Jan – Jun 2024 – Jun 2023 2021 RMB’000 RMB’000 2020 Jan RMB’000 RMB’000 (Loss)/Profit for the year (8,520,745) 15,168,214 Other comprehensive income for the year (after ta
Slide 44: Condensed Consolidated Statement of Financial Position
Appendix: Condensed Consolidated Statement of Financial Position 44 As at 30 June 2024 30 June 2024 31 December 2023 RMB’000 RMB’000 Non-current assets Property, plant and equipment 2021 RMB’000 35,506,185 2020 RMB’000 38,332,903 Investment properties 122,995,708 128,215,536 Intangible assets and go
Slide 45: Condensed Consolidated Statement of Financial Position
Appendix: Condensed Consolidated Statement of Financial Position 45 As at 30 June 2024 30 June 2024 31 December 2023 RMB’000 RMB’000 Non-current liabilities 2021 RMB’000 2020 RMB’000 Bank loans and borrowings from financial institutions 185,577,845 197,764,143 Bonds payables 43,736,764 59,871,016 Le
Slide 46: Condensed Consolidated Cash Flow Statement
Appendix: Condensed Consolidated Cash Flow Statement 46 For the period ended 30 June 2024 Jan – Jun 2024 Jan – Jun 2023 RMB’000 RMB’000 Operating activities 2021 RMB’000 2020 RMB’000 Cash generated from operations 3,468,165 21,716,680 Income Tax paid (8,644,490) (19,852,180) Net cash (used in)/gener
Slide 47: THANKS!
THANKS! Vanke Weekly Vanke Investor Relations Yixuanfang Important Note: This material is derived from the 2024 interim report of Vanke. In the event of any discrepancies, the interim report will take precedence. Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen 0755-25606666 i