China Vanke : Vanke 2023 Interim Results Presentation

2023 INTERIM RESULTS

ANNOUNCEMENT

C H I N A VA N K E C O . , LT D .

A u g u s t 2 0 2 3

I. Results Overview

CONTENTS

II. Highlights of 2023 H1

III. ESG Performance

IV. Priorities for 2023 H2

I. Results Overview

The first half of 2023 was challenging for the industry. After a brief uptick, the market declined sharply following a tumultuous market environment. In response, Vanke remained committed to its strategy of "putting equal emphasis on development, operation, and service", which enabled the Company's operation and service segments to maintain growth momentum, even as the development business saw some impacts from market influences. Moreover, the Company continued to optimize its asset/liability structure, ensuring a robust financial and capital position.

Revenue and net profit attributable to the parent company decreased

3

Total revenue was RMB 200.89 billion, down by 2.9% YoY.

Net profit attributable to equity shareholders stood at RMB 9.87 billion, down by 19.4% YoY, mainly due to the decline in the settlement scale of the real estate development businesses and the settlement margin.

The Group's gross margin before-tax reached 18.9%, down by 1.6pct YoY. The Group applied the cost method for measuring the operational assets. After adjusting for depreciation and amortization, the gross profit margin was 20.2%, down by 1.5pct.

Revenue (RMB hundred million )	Net profit attributable to equity	Group's gross margin before-tax
		shareholders (RMB hundred million)
		122.5	22.9%
2,069.2	2,008.9	20.5%
110.5
			18.9%

1,671.1		98.7
	-2.9%			-19.4%			-1.6pct

2021 H1

2022 H1

2023 H1

2021 H1

2022 H1

2023 H1

2021 H1

2022 H1

2023 H1

Results Overview

Operating cash flow

Net cash inflow for 14 years in a row

Structure of interest-bearing liabilities

Short-term liabilities account for

14.2%

Lowest on record

4

Financing method

Unsecured & unpledged financing accounts for

93.9%

Development business

Sales RMB 203.94 billion

Top 3 in 32 cities

Operation & Service business

Total revenue RMB 26.73 billion

YoY increase 11.9%

Property service

The number of Onewo Towns increased to 601

Gross margin of post- transformation Onewo Town projects increased by 4pct

Long-term rental apartments

Occupancy rate 95.9%

83k units included in the affordable rental housing scheme

Logistics & warehousing

Utilization rate of cold chain reached

79% in the stable period,

up by 4pct compared with the beginning of 2023.

Commercial property

Occupancy rate of SCPG reached

94.7%, up by 1.5pct

compared to the beginning of 2023.

SCPG produced 88 entrusted

management projects in total.