CHINA VANKE CO., LTD.
China Vanke Co. Founded in 1984.
China Vanke Co., Ltd. has become a leading real estate company in China since it stepped into the housing market over thirty years ago in 1988, with its main business being real estate development and property service. Adopting the strategy of focusing on city clusters, Vanke has covered 66 cities in mainland China by the end of 2015, mainly in the Pearl River Delta centered on cities of Guangzhou and Shenzhen, the Yangtze River Delta centered on Shanghai, the Bohai Rim Region centered on Beijing, and the Chengdu Region which covers major cities in Midwest China. Since 2013, Vanke made its attempts to invest overseas. It has now been involved in Dozens of real estate development projects in Hong Kong, Singapore, San Francisco, New York City and London. Its sales volume in 2015 amounted to RMB261.47 billion with a year-on-year growth of 14.3% for 20.671 million square meters with a year on year growth of 20.7%, making it an industry leader globally in terms of sales performance. It also witnessed an increase of national market share to 3%. Vanke delivers its property service business mainly through Vanke Property Development Co., Ltd., which always regards the first-class property service and building maintenance as the essence of running business, actively implement marketization, and provide excellent residential service for more clients. By the end of 2015, Vanke Property had near a thousand property service projects in 64 large- and medium-sized cities in mainland China, covering a contractual property management area of 210 million square meters.
In 1991, Vanke became the second company that was listed on Shenzhen Stock Exchange, and has since been recognized by investors for its continuous growth, as well as transparent and standardized corporate governance structure. Over the years, it has been included in the Forbes 200 Best Under a Billion, Asia's 200 Best Under a Billion, and Asia's Fab 50 Companies. For many times it has received awards for best corporate governance and best investor relations by international authoritative publications such as IR Magazine. To further encourage the sense of ownership, passion, and creativity of the business executive management team and offer support of managerial mechanism for corporate operational transition, Vanke initiated its Business Partner Stock Ownership Plan in May 2014, which has strengthened the relations between its management team and shareholders, and ensured the alignment of the interests of the business partners and shareholders.
Vanke believes that the cornerstone of its success is: safeguarding the bottom line of moral values, resisting unjust benefits, while insisting on fair returns from the market through professional expertise. By realizing standardized and transparent corporate culture, and reliable and focused development model, Vanke endeavors to be a highly respected enterprise that is most popular among customers, investors, and employees.
Throughout decades of business operations, Vanke has upheld the principle of “no land reserves, no property withholding for future sales at higher prices, and not bidding for land king to develop”. It adopts the strategy of fast turnover, fast development and gaining fair returns from investments through professional expertise. The positioning of its mainstream housing products are the well-built residences targeted at ordinary people. Vanke sold 93% of the housing units that were 144 square meters or under in 2015, while insisting on quick sales and reasonable prices. It has been operating in a standardized manner without pursuing high profit margin. In 2012, its taxation reached RMB 32.3 billion, making it the No. 1 tax payer among real estate developer in China for years. It's worth mentioning that the amount of taxes it pays each year has been higher than its annual net profit.
Through years of relentless efforts, Vanke has honed its competitive edge in the housing industry: it is the first Famous Chinese Trademark in the real estate industry, owning brands such as “Wonderland”, “City Garden”, and “Golden Home” that are highly popular among consumers all over China. Vanke's R&D product “Scenic Garden Apartment Building” was the first patented product (invention patent) in the Chinese housing industry. Vanke's property service business was the first to be ISO9002-certified in China. The Vanke Club is the first customer relations organization that has ever been created in the housing industry. It is also the first Chinese real estate company that hires third-party organizations to conduct all-around customer satisfaction survey.
Since its foundation, Vanke has been advocating “a rich and healthy life” by valuing work/life balance. It hopes to improve the health of its employees by cultivating and promoting their health consciousness. It also hopes, by serving as a role model, to get more people outside the company involved in its health campaigns – running with the public toward health and prosperity. Since 2013, Vanke initiated “Run for Fun” – a noncommercial and noncompetitive sports activity organized by Vanke for the public, partnering with influential organizations. With the “Run for Health, Run for Fun, Run for Friendship” idea in mind, Vanke aims to pass on the healthy life concepts to everybody and get everybody feel the joy brought by healthy life, while discovering the energy and beauty of cities and their communities.
Vanke provides its employees with space and opportunity for their sustainable development, and encourages them to grow together with the Company. Vanke is an advocator for simple interpersonal relations and it is devoted to creating a working atmosphere where the employees can give full play to their talents. Vanke successively won the Aon Hewitt Best Employer China 2015 Award for the eight times.
Vanke endeavors to lead the industry in energy efficiency improvement and carbon emission reduction by relentlessly promoting green building and housing industrialization. In 2015, the total area of Vanke products certified by National Green Building Standards reached 14.07 million square meters, of which 13.08 million square meters were rated 1-star and 2-star green projects while 990,000 square meters were rated 3-star. As air quality has been a major social concern in recent years, Vanke has developed a technical solution called the smog eliminating wind system to ensure a healthy living space for customers by making the indoor air quality as good as that in a natural scenic area.
Vanke has been tirelessly pushing forward housing industrialization. In 2007, Vanke Architecture Research Center was ratified as a national housing industrialization base by the Ministry of Housing and Urban-Rural Development of the People's Republic of China. In 2011, Vanke's Long Vacation project in Beijing received the award of “Beijing Housing Industrialization Exemplary Project” from Beijing Housing and Urban-Rural Development and Beijing Science and Technology Committee. Dongguan Vanke Architectural Technology Research Co., Ltd. received a High-tech Enterprise Certificate jointly issued by Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Office of State Administration of Taxation, and Guangdong Local Taxation Bureau, and was the first high-tech enterprise to be certified in the real estate industry. Its new housing industrialization projects in 2015 covered a total area of 14.82 million square meters, among which 80.9% were residential industrialized products, with an increase of 12 % compared with last year.
Vanke has been actively performing its social responsibilities as a corporate citizen. In 2008, Vanke Charity Foundation was established, which was initiated by Vanke and approved by the Ministry of Civil Affairs of the People's Republic of China and the China State Council. Up to now Vanke has donated over RMB 416 million to public charity projects. In 2015, the Foundation’s total expenditure was RMB 26.801 million, mainly on areas of child education, healthcare, emergency relief, community development, waste classification, and environmental protection.
At the construction sites of this leading real estate developer in China, hundreds of thousands of migrant workers are working hard every day. Vanke has always been concerned about the well-being of the workers, esp. when they become ill and fall into poverty, which would exert serious negative influence on their families, including the education and growing-up of their children. In April 2011, Vanke announced the initiation of its “Action in Spring” project in order to provide relief for those migrant workers who cannot afford the medical expenses for themselves, their spouses or children suffering from major illness or those who are too poor to allow their children to complete education.
Partnering with Ai You Foundation, Vanke Charity Foundation has set up Ai You Care Centers in Chinese provincial capitals or major cities by cooperating with the local child welfare institutions. By making use of the sites of these institutions, the resources of the Vanke Charity Foundation, and the professional operational management of the project teams, Vanke integrates the rich medical resources of designated hospitals and sets up “Ai You Newborn” – a well-equipped healthcare center for diseased orphans, to provide them with safe and effective care. In 2015, 386 orphans return to the original family, the original foster family, the former orphanage and other places when the conservation at the healthcare centers come to an end and during the same period, 413 new orphans entered the healthcare centers. Since June 2008, Vanke Charity Foundation has started to provide financial aid for orphans or poverty-stricken children suffering from congenital heart disease and needing surgery. In 2015 alone, it helped 60 such children from all over the country. With a strong sense of responsible for all the donators, the Foundation ensures that the children who need help the most actually receive it, through visits or return visits conducted by Vanke corporate volunteers.
Vanke has been delivering its social responsibilities by taking advantage of its professional expertise in the field of real estate. Since 2006, Vanke has been actively responding to government's requests to participate in social indemnificatory housing and low-income housing projects in different parts of the country. In Guangzhou in 2007, Vanke completed Wanhui Building, the country's first low-income housing project invested by an enterprise to solve the housing problem for the low-income population. It has been listed by Guangdong Provincial Department of Housing and Urban-Rural as a “rental housing pilot project targeted at the low-income population”. The project received positive attention and comments from the public and served as a valuable example for wider application of low-income rental housing. The Longyueju Social indemnificatory Housing Project built by Vanke in Longhua, Shenzhen, covers a ground area of 50,000 square meters and a total building area of 215,000 square meters, providing 4,002 housing units. Built by way of industrialized production, the project used a great deal of prefabricated components, thus greatly reduced building material loss and waste. Upon delivery, the units were already furbished, and the whole project meets the standards for 1-star (or better) green building certification by the Ministry of Housing and Urban-Rural Development. In 2014 in Beijing, China's capital with dense population, Vanke built social indemnificatory housing such as Xihuafu, Vanke Orange City, and Vanke East Shire, which effectively helps Beijing to solve the housing problem for families in need by contributing its professional expertise, resources, and efforts. By the end of 2015, Vanke had completed tens of social indemnificatory housing projects covering over 1 million square meters in cities such as Beijing, Xi'an, Qingdao, Urumqi, Shenzhen, Xiamen, Sanya, Nantong, Hangzhou, and Shanghai. These social indemnificatory housing projects include affordable housing, low-rent housing, public rental housing, public support housing, and fixed-price housing.
Vanke has been persistent with its strategy of “growing together with cities”. With demographic and industrial structures changes, as well as increasingly diverse lifestyles in recent years, new demands for property are emerging. By adhering to the standards of “excellent housing, excellent service, excellent community”, Vanke will adapt to the urban development trend and provide urban families with quality residential services, while actively meet the needs of urban businesses and public facility developments. Seeking to identify and seize new business opportunities, Vanke will make its transformation from a traditional property developer to an urban infrastructure service provider.