China Vanke Co., Ltd. (hereinafter “the Group” or “the Company”) was established in 1984. After 30 years of development, it has become a leading city and town developer and service provider in China. The Group focuses on the three most vibrant economic circles nationwide and key cities in Midwest China. The Group first appeared in the Fortune Global 500 list in 2016, ranking 356th. It has since remained on the league table for five consecutive years, ranking 307th, 332nd, 254th, 208th and 160th respectively.
In 2014, Vanke had expanded its positioning as a company offering “good houses, good services, good community” to an “integrated city service provider”. In 2018, the Group further upgraded such positioning to “city and town developer and service provider” and specified it as four roles: to provide setting to a beautiful life, to contribute to the economy, to explore creative experimental fields and to construct a harmonious ecosystem.
In 2017, Shenzhen Metro Group Co., Ltd. (SZMC) became the largest shareholder of the Group. SZMC keenly supports Vanke’s mixed ownership structure, its integrated city ancillary service provider strategy and the business partner mechanism, and also supports the operation and management work undertaken by Vanke’s management team in accordance with pre-determined strategic objective as well as the deepening of the “Railway + Property” development model.
Vanke has been persistently providing good products and good services to the general public, satisfying people’s various demands for a good life with its best efforts. Up till now, the ecosystem it has been constructing is getting into shape. In the property area, Vanke has always upheld the vision of “building quality housing for ordinary people to live in”. While consolidating its existing advantages of residential property development and property service, the Group’s businesses have been expanded to areas such as commercial development, rental housing, logistics and warehousing services, ski resorts, and education. This has laid a solid foundation for the Group to better satisfy people’s needs for a good life and to achieve sustainable development. In the future, with “people’s needs for a good life” as the core and cash flow as the basis, the Group would continue to “follow the fundamental rules of the world and strive for the best as a team” while executing the strategy of “city and town developer and service provider”. The Group would constantly create more true value and strive to be a respectable enterprise in this great new era.
HKEx listed companies
city & town developer &
Follow the fundamental rules of the world and strive for the best as a team
Ranked 160th in the 2021 Fortune Global 500
Group first appeared in the
Fortune Global 500 list
It has since remained on the
league table for four consecutive years,
ranking 307th, 332nd, 254th
and 208th respectively.
In 2019, the Group achieved a revenue of RMB367.89 billion, representing a year-on-year increase of 23.6%; and the net profit attributable to equity shareholders of the Company reached RMB38.87 billion, representing a year-on-year increase of 15.1%. Basic earnings per share amounted to RMB3.47, representing a year-on-year increase of 13.3%. Fully diluted return on equity was 20.7%.
In the property development business, the Group realized a sales area of 41.122 million sq.m. and a sales amount of RMB 630.84 billion, representing a year-on-year increase of 1.8% and 3.9% respectively in 2019. And the Group’s share in the commodity housing market in China was around 4%. In the same year, Vanke ranked no. 1 in terms of sales volume of properties in 21 cities in China and ranked no. 2 in 12 other cities. Furthermore, the Company also looks out for investment opportunities in overseas markets. It has already entered eight cities overseas, namely New York, San Francisco, Los Angeles, Seattle, London, Moscow, Singapore, and Kuala Lumpur etc.
Vanke has been persistently “building quality housing for ordinary people to live in”. The main products of the Group’s property development business are residential properties and commercial auxiliary facilities. Among the products sold in 2019, residential properties, retail and office properties, and other auxiliary facilities accounted for 86.4%, 10.0% and 3.6% respectively. The residential products were mainly small and medium-sized units, focusing on the actual housing needs of the mainstream customers. Of all the residential products sold in 2019, the small and medium-sized units under 144 sq.m. accounted for 91.2% of the total. And this figure has exceeded 90% every year in each of the past seven years.
After years of relentless efforts, Vanke has honed its competitive edge in the housing industry, owning brands such as “Four Seasons Flower City”, “City Garden”, “Golden Home”, “Golden Home International” that are highly popular among customers all over China; its “House with Layers of Scenic Balconies” was the first patented product and invention patent in China’s real-estate industry; its property service business was the first to be ISO9002-certified in China; the Vanke Club was the first customer relations organization that has ever been created in the real-estate industry. The Company launched the world’s first open forum for customer complaints. It is also the first Chinese real-estate company that hired a third-party institution to conduct a 360-degree customer satisfaction survey. The Company also put forward the “6+2 steps” for customer services and got a patent for it. In the future, the Group will continue to deepen the “good products, good services”concept and satisfy the real household demands of customers.
The mission of Vanke Property Service is to “allow more users to experience the charm of property services” and upgraded its strategy from emphasizing both residential and commercial properties to “simultaneous development of residential property services, commercial property and facility management services”, in order to speed up the “serviced city” objective. In 2019, the property service business of the Group achieved a revenue of RMB 12.7 billion, representing a year-on-year increase of 29.7%. In the newly signed saturated income, residential business accounts for 62% and non-residential accounts for 38%. By the end of January 2020, Vanke Property Service had tapped into 94 medium and large cities (including Hong Kong) in China with 3672 contracted projects, including 2663 residential properties and 1009 commercial properties with a contracted area of over 640 million sq.m. and over 100,000 employees. As the lead runner in the property management industry in China, Vanke Property Services focuses on all-life circle service to retain and increase the property values for property owners, and endeavors to have more users experience the quality property services. Its business scope covers six main areas, namely residential property service, commercial property service, developer’s pre-service, community asset service, digital technology service and community life service. For the 10th year, Vanke has won the award of “TOP1 of China’s Top 100 Property Service Providers”, and topped the list of “Favorite Property Service Brand Chosen by China’s Top 500 Property Developers” for six consecutive years, and also won the honorary title of “Leading Enterprise of Featured Property Services in China – Enterprise Headquarter” for three years in a roll.
In the field of commercial properties, there were a total of over 260 commercial projects under the Company’s management, with a total gross floor area of more than 13.5 million sq.m. by the end of August 2020. The Group uses SCPG as the management platform, and insists on a user-centered approach. It continues to promote business service innovation, inventory asset management and digital construction, and optimize urban space experience to facilitate cities’ urban upgrade process. At the same time, it actively explores the business operation model for the community. Up to now, the total scale of area managed by SCPG ranks second in the industry.
In the area of logistics and warehousing service, the Group launched its independent logistics brand “VX Logistic Properties” in 2016, which has become a leading logistics service provider in China after five years’ development. VX Logistics Properties focuses on high-standard warehouse and has formed a national high-standard warehouse network in the core logistics cities in China. VX provides clients with high-standard warehouse facilities and diverse cold-chain logistics service. By the end of 2019, VX Logistics Properties has entered 44 cities and the GFA of leasable properties has exceeded 10 million sq. m., operating 15 professional cold-chain logistics industrial parks nationwide. VX acquired the Swire cold-chain logistics platform in 2018 and expanded its business scope. In 2017, a consortium made up of Vanke, Hillhouse Capital, HOPU Investments, an affiliate of Bank of China and SMG jointly participated in the privatization of the leading global modern logistics facility provider GLP.
In the rental housing field, the Group launched its main product line for long-term rental apartment “Port Apartments” in 2016. In four years, Port Apartments has become a leading brand in China, with its business focusing on key economic cities in China, dedicated to providing rental space with quality and warmth for 18 to 40-year-old young urban population. Currently its business has entered 33 cities in China, with a total of over 110,000 units in operation by the end of 2019.
Furthermore, the Group aims to further develop in line with its key customers and the core cities and continues to actively explore businesses such as ski resorts and education.
For the ski resort business, the Group continues to improve quality and create the best ski holiday destinations. The Group operates three ski resorts, namely the Jilin Vanke Songhua Lake resort, Beijing Shijinglong ski resort and Beijing Xishan ski resort. Among which, the customer flow and the customer satisfaction rate of the Jilin Vanke Songhua Lake resort stayed ahead in the industry and has won the “Best Ski Resort in China” title in the World Ski Awards competition for three consecutive years. Before the temporary business shut-down due to the Covid-19 pandemic, admissions to the above mentioned three ski resorts totaled 390,000. In 2017, the Company entered into strategic collaboration with Singapore Banyan Tree Group to jointly grow hotel and related businesses, building on the strengths of both parties.
In the education field, the Group has explored the K12 full-time teaching system through various modes including innovative public schools, PPP and private internationalized schools. At the same time, the Company actively expands its quality education bases, including city camps, community camps, and outdoor camps, and has realized all-rounded integration and upgrade of online educational resources, making use of Meisha education online platform. Up till August 2020, the Group has participated in the operation of over 41 schools and kindergartens nationwide. In terms of camp education, Meisha Outdoor Camp has been providing quality education services to more than 100,000 young people since its establishment in 2015.
Meanwhile, in terms of project and engineering management, the Group always upholds the idea of safety and quality first. Through the various project evaluation processes, such as underground evaluation, quarterly evaluation, delivery evaluation and customer inspection guidelines, product quality is guaranteed and constantly enhanced in all three aspects from process monitoring, results examination to customer perspectives. The performance and quality of the products purchased were guaranteed through the “Skynet Action”. The Company continues to promote the development of green buildings and has been leading the sustainable development in the industry by maximizing the conservation of resources, protecting the environment and reducing pollution. In 2019, the area of projects labelled as green buildings completed by the Group was 46.62 million sq.m. Since the promotion of green buildings in 2009, the area of green building in the Group reached a total of 193 million sq.m. The Group actively promotes the application of residential industrialization technologies, to explore a leading architectural industrialization pathway that both meets the market demands and is in line with the development of the industry by intensive research in areas of standardization, industrialization and production. In 2018, Vanke continues to perfect its “5+2” construction system in order to improve quality, efficiency, and to reduce consumption and emission, and reliance on manual work. It has been actively and stably promoting industrialization by compiling the “2018-2021 Vanke industrialized system promotion methods” based on the previous practice of industrialized construction methods and China’s standard for assessment of prefabricated building. In 2019 the floor area that started construction with an industrialized method accounted for 86% of the floor area that started construction. The Company also uses advanced technology to enable better project management and operation. The Company continues to promote the application of BIM (Building Information Modeling), a construction information technology to manage projects, in order to enhance quality of blueprint drawing and reduce the modification to construction work on site. Furthermore, the Company promotes application of resources management system on business projects, and collects real-time data of operation status and energy consumption level of various energy-using equipment. It undertakes more efficient energy-saving work based on data, in order to realize actual green and energy-saving operation.
At present, the company is pushing forward business partnership scheme in depth, the current business partnership scheme is based on the principles of “consensus, co-creation, joint assumption and sharing”. By organically combining capital, knowledge labor and entrepreneurship, enthusiasm of employees is better motivated through system innovation. The business partners are devoted to creating real value of longer term for the maximum number of stakeholders and providing practical samples for the innovation and upgrading of the modern enterprise systems. In 2017, the Group explored and came up with the theoretical base, core mechanism and basic guideline that inform Vanke’s business partnership model through collaborative work of the teams, and at the same time, it has actively started the practical execution of the business partner model.
While achieving growth in performance, the Group also responded positively to the call of the Central Committee of the Communist Party of China and the State Council in succeeding poverty alleviation. Using its own advantages, the Group has been supporting public affairs and carried out charity activities in areas of poverty alleviation, education development, children’s healthcare, disaster relief, community development, garbage classification, climate conference, and ecological protection, etc., striving to be a good “corporate citizen”.
Vanke Charity Foundation was officially founded in 2008, approved by China’s Ministry of Civil Affairs. From 2018 to June 2020, the Foundation has put in RMB 644 million on poverty alleviation. The Group and Shenzhen Municipal Government jointly endowed the Tibet Intangible Cultural Heritage Museum and officially delivered the project in June 2018. Vanke endowed and constructed the Tuheman School in Xinjiang and delivered the project in September 2016, which did not get any damage from the earthquake in the county in 2017, and guaranteed the safety of the teachers and students. Vanke endowed and delivered the first phase buildings of the Shouning East District Middle School in Fujian Province, which include facilities of teaching buildings, comprehensive buildings, labs, and sports ground, providing good learning environment and advanced hardware facilities for more children. In Zundao of Sichuan Province, Vanke has been persistently supporting the education development of the Sundao School for ten years now. In the past ten years, students’ performance in the high school entrance exams has constantly improved and over a hundred graduates have entered university. In addition, Vanke donated to and supported the basic education of five counties in Guizhou and Gansu, to improve the facilities in kindergartens and primary school in poor countryside. Apart from that, Vanke Charity Foundation collaborated with the Beijing Lead Foundation to support the “Teach for China” program and recruit good teachers for the countryside. It has also worked with the Green and Shine Foundation to recruit teachers to improve the basic education environment and education level of the countryside schools in Zhenfeng County of Guizhou Province.
As the city and town developer and service provider, responding to the arrangement by the Guangdong Provincial Government for the city of Shenzhen to support the development of Heyuan and Shanwei cities, Vanke has started village revitalization work in these two cities. It aims to improve the outlook of villages, promote the Red Culture, and perfect the basic infrastructure, as well as to heighten the village’s cultural and hygienic level, and encourage young villagers to return to hometown to start businesses and improve the well-off of villagers.
For many years, Vanke has joined hands with all walks of life, and carried out specific salvation and support programs to help children grow up healthily and happily. Vanke has been actively following climate change and exercising its green responsibility. Since 2009, Vanke has participated in the United Nations Climate Change Conference for many years and hosted the China Pavilion Enterprise Conference in order to promote international cooperation and communication on climate change. Furthermore, Vanke has been vigorously promoting public welfare projects like garbage classification, wetland conservation, biodiversity conservation and protection of historical buildings.
In the area of environmental protection and sustainable development, Vanke designed, constructed and operated the Vanke Botanic Pavilion, which is one of the four core venues of International Horticultural Exhibition in Beijing. The theme of the pavilion is “Incredible Wisdom of Plants” and it uses “the rising horizon” as its architectural design concept. There are over 1000 species of plants in the Pavilion, showcasing the wisdom of plant evolution.
Looking ahead, the Group would continue to “follow the fundamental rules of the world and strive for the best as a team” while executing the strategy of being “a city and town developer and service provider”. It would insist on the idea of striving for the best together to meet people’s increasing demand for a better life, to constantly create more true value and realize quality development.
Honors and rewards:
In 1991, Vanke became the second listed company on the Shenzhen Stock Exchange and has earned wide recognition from investors through its constantly growing performance as well as its standardized and transparent corporate governance structure. The Company has been enlisted in the Forbes league tables at different stages of its history as “200 Best Small Companies”, “Asia’s 200 Best Under a Million”, and “Asia’s 50 Best Big Public Companies”. It has been awarded for best corporate government, best investor relations many times by well-known international media such as “Investor Relations”. Vanke has been voted by Fortune China for ten consecutive times as “China’s Most Admired Company”. It has also won the title of “Most Respected Company in China” awarded jointly by the Economic Observer and the Peking University Management Case Study Centre for the 13 times in a roll.