Vanke's Q1 Revenue INCREASEs by 68% YOY To RMB30.3 Billion

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For the first quarter ended 31 March 2018, China Vanke Co., Ltd. (“Vanke” or the “Company”, together with its subsidiaries “the Group”, stock code: 2202) realised a revenue of RMB30.34 billion, representing an increase of 68.0% when compared with that of the corresponding period last year. Profit for the period attributable to equity shareholders of the Company amounted to RMB0.89 billion, up by 28.7% year-on-year.

Due to lower revenue recognised from projects under joint ventures and associated companies, and impairment provisions recognized for some of these projects according to current market condition, as well as corresponding increase in interest and financial expenses due to enlarged financing scale, the growth rate of net profit attributable to equity shareholders was lower than that of revenue during the Reporting Period.

During the Reporting Period, due to impact of completion of privatization of Global Logistic Properties and increase in project investment, a larger amount of payment was settled during the period. Nevertheless, the Group still maintained a favourable financial and capital position. As of the end of the Reporting Period, the cash and cash equivalents (including restricted deposits) held by the Group reached RMB94.78 billion, which was substantially higher than the sum of interest-bearing liabilities due within one year of RMB48.91 billion. The interest-bearing liabilities accounted for 15.8% of total assets, which was 0.6 percentage point lower than that at the end of year 2017, and long-term liabilities accounted for 74.7% of interest-bearing liabilities.

During the first quarter, the booked area and revenue of Vanke’s property development business were 1.65 million sq m and RMB27.38 billion respectively, representing increases of 15.4% and 75.9% respectively from those of the same period of 2017. During the Reporting Period, the Group’s property development business realised a contracted sales area and contracted sales amount of 10.48 million sq m and RMB154.26 billion respectively, representing increases of 6.1% and 2.7% year-on-year.

As at the end of the Reporting Period, the Group’s area sold but not completed for recognition was 35.64 million sq m as stated in the consolidated financial statements, with a contract amount increasing to RMB494.49 billion, representing increases of 20.3% and 19.3% when compared to those at the beginning of the year respectively.

Vanke persisted with its prudent investment strategy and paid attention to market opportunities, and continued to broaden its channels for project acquisition. During the first quarter, the Group acquired 49 development projects, with a planned gross floor area (“GFA”) of approximately 9.44 million sq m, of which the planned GFA attributable to Vanke’s equity holding amounted to approximately 4.30 million sq m. As at the end of the Reporting Period, the GFA of the Group’s projects under planning was approximately 62.23 million sq m, of which the planned GFA attributable to Vanke’s equity holding amounted to approximately 37.91 million sq m; the GFA of projects under construction was approximately 78.05 million sq m, of which the planned GFA attributable to Vanke’s equity holding amounted to approximately 50.10 million sq m. In addition, the Group continued to participate in urban renewal projects. Based on the current planning conditions, the GFA of urban renewal projects attributable to Vanke’s equity holding was approximately 2.78 million sq m.

During the Reporting Period, the Group realized a floor area of new construction of 11.30 million sq m, representing an increase of 23.1% and accounting for 31.9% of the planned floor area of new construction for the entire year (same period of 2017: 31.4%). The Group achieved a completed floor area of 1.55 million sq m, representing an increase of 24.3% and accounting for 5.9% of the planned floor area scheduled for completion for the full year (same period of 2017: 5.1%).

The Group continued to consolidate its established edges in residential properties development and property services, and positioned rental housing as one of its core businesses, and, at the same time, actively expanded other businesses including commercial development and operation, logistics and warehousing services, industrial towns, skiing resort, elderly care and education, etc.