news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

"on the supply side, the supply of new houses is relatively insufficient. the area of ​​new residential construction has dropped by 24% year-on-year so far this year. according to this trend, the annual supply is expected to be around 500 million square meters. even compared with some countries where urbanization is fully mature, the current supply level is still low. the improvement in the supply and demand relationship has provided conditions for the market to get out of the trough and regain upward momentum."

on the evening of august 30, vanke held its 2024 mid-term performance meeting. when asked about his views on future market trends, yu liang, chairman of the board of directors of vanke, said that in the medium and long term, although the potential housing demand has passed the historical peak, the absolute scale is still huge. in the short term, after three years of adjustment, the cost-effectiveness of new houses is improving, and the policy support for diversified housing needs is also continuing to increase. these are accumulating energy for the recovery of market demand and providing soil for the arrival of a new development stage.

in the first half of 2024, vanke achieved operating income of 142.78 billion yuan, with full sales, a collection rate of over 100%, and sales collection of nearly 130 billion yuan. the net operating cash flow in the second quarter improved significantly compared with the first quarter, achieving a positive cash flow of 4.2 billion yuan, and there is no overseas public debt this year.

vanke said that in order to cope with the current severe operational challenges and adapt to the new model of industry development, it will more strictly implement "slimming and strengthening" and cost reduction and efficiency improvement measures in the second half of the year.

vanke's management will turn pressure into motivation, use the "package plan" as a roadmap, go all out to overcome difficulties, push the company through the temporary risks as soon as possible, get back on track for healthy development, and regain the trust of shareholders with practical actions.

vanke 2024 interim results presentation (photo provided by the company)

there is only one domestic public bond left this year

through all-out action, vanke has continued to reduce its existing debts and has no overseas public debts this year.

in the first half of the year, vanke has repaid a total of 52.4 billion yuan in debts. as of now, it has completed the repayment of 7.3 billion yuan of domestic public bonds and medium-term notes, as well as overseas public bonds equivalent to approximately 10.4 billion yuan. all overseas public bonds have been repaid this year, and there is only one medium-term note of 2 billion yuan left for domestic public bonds this year.

when asked about the company's cash flow and financing situation, vanke's executive vice president and chief financial officer han huihua said that with its own efforts, support from all sectors of society, and assistance from the policy side, vanke is confident that it can maintain stable operations and complete the tasks of "ensuring delivery of houses" and "ensuring redemption."

in the first half of the year, vanke always put "ensuring delivery of houses" and "ensuring repayment" in the first place, not only successfully completed the delivery of 74,000 houses, but also repaid 15.4 billion yuan of domestic and overseas bonds on schedule. although there are still challenges in the current operation, vanke will definitely go all out to overcome them, ensure that the projects can be delivered on time and with quality, and complete the repayment of various debts.

regarding the financial situation and debt repayment arrangements in the second half of the year, vanke said that there are nearly 100,000 houses to be delivered in the second half of the year, a year-on-year decrease of 40%. currently, there are only 2 billion yuan of domestic bonds left to be repaid in the maturing open market credit bonds.

vanke will anchor its established business objectives, continue to maintain stable sales and cash collection, accelerate major transactions and equity disposals, continue to balance the rhythm of income and expenditure in accordance with the principle of living within one's means, and create more freely available cash flow while striving to complete the task of delivering houses in the second half of the year.

at the same time, in terms of arrangements for repayment of various types of debts, in addition to creating cash flow on the operating side, vanke will stabilize the scale of existing bank financing as much as possible, actively transform its financing model, and continue to strive for opportunities such as syndicated loans and operating property loans to provide incremental liquidity, thereby ensuring the safe repayment of debts.

as of the end of july, vanke's new financing and refinancing totaled more than 67 billion yuan. taking into account the changes in supply chain financing, the company's consolidated statement of interest-bearing liabilities plus total supply chain financing decreased by about 17.2 billion yuan from the beginning of the year.

the “package solution” is not simply a “subtraction”

at the performance meeting, vanke introduced its overall work ideas for the current stage. the "package plan" formulated and implemented in the first half of the year is a five-year plan for vanke group to comprehensively resolve potential risks and actively adapt to the industry's transition to a new development model.

the plan specifically includes: achieving a reduction in the overall debt scale; clarifying the three core businesses of comprehensive residential development, property services and rental housing; and completing the transformation of financing models.

vanke also emphasized that the "package plan" is not a simple "subtraction", but also includes development plans, including: actively promoting r&d and innovation of integrated residential product modules to enhance the competitiveness of development business; ensuring the level of investment realization; achieving quality growth in the asset management scale of operating service businesses such as long-term rental apartments and property services, and industry-leading competitiveness.

i believe that with the advancement of the "package plan", after vanke has overcome the temporary difficulties in the past two years, the group's business will be more focused, investment will be more focused, capabilities will be more focused, and it will enter the track of high-quality development.

"after three years of adjustment, housing prices have fallen back to a relatively reasonable level. as product and service capabilities improve, the cost-effectiveness of new homes is also improving.for example, the pu shi yin cui project we launched in hefei in the first half of this year is the double champion of local sales area and sales amount. on the one hand, the project has excellent products, and on the other hand, the price is also competitive. in the context of a general market downturn, all six launches were sold out. "yu liang said.

vanke said that in general, while the scale of the new housing market has shrunk, the difficulty of project operation has increased, and the pass line for operation has been greatly increased. however, as the ministry of housing and urban-rural development mentioned, judging from the process of urbanization in my country and the people's new expectations for good housing, the real estate market still has great potential and space.

in addition, vanke's executive vice president and chief operating officer liu xiao pointed out that as of the end of july, a total of 20 billion yuan of bulk transactions had been signed, covering 31 projects including offices, commercial, hotels, and apartments, which would be able to achieve the 2024 asset transaction target in the "package plan".

in terms of riets, intime completed the issuance of 3.26 billion yuan of commercial infrastructure reit, logistics and warehousing reit was accepted by the china securities regulatory commission, and affordable rental housing reit has been submitted to the local development and reform commission for approval. vanke also established two pre-reit funds with a total of 12.2 billion yuan.

vanke said that in the next four months, vanke's bulk transactions will continue to move forward along the established route, and currently there are 19 projects under negotiation. the focus of vanke's subsequent asset transactions is to improve the quality of asset management, which can not only support the transaction of excellent assets, but also support vanke's transformation of its financing model as the external financing environment becomes better and better.