I. Company Profile

Company's main business: real estate and property management

Vanke Enterprise Co., Ltd. was established on May 3, 1984. Vanke Enterprise Co., Ltd. is one of the first publicly listed enterprises in Chinese mainland. The company is mainly engaged in setting up industries (specific projects shall be declared separately). Domestic business; Material supply and marketing industry (excluding franchised, controlled and monopolized goods); Import and export business (according to the provisions of the Shenzhen Economic Development Examination Certificate No.113th foreign trade enterprise examination certificate); Real estate development, etc. By the end of 21, the company has entered 46 urban markets, and determined the development strategies of three regional urban agglomerations centered on the Pearl River Delta, the Yangtze River Delta and the Bohai Bay region, as well as other regional central cities. In 21, Vanke was ranked in the "All-Star List of China Companies in 21" and ranked first in the "Real Estate Development" industry list; In the "Golden Bull Top 1 Awards of Listed Companies" selected by china securities journal, Vanke ranked fourth in the top 1 list, the first in the real estate company, and won the first place in the "Top 1 Golden Bull Listed Companies in My Mind"; In the selection of "Top 1 Listed Companies on Main Board in China" sponsored by Securities Times, the company won "Top 1 Listed Companies on Main Board in China", "Top 1 Management Teams of Listed Companies on Main Board in China" and "The Most Socially Responsible Listed Company in China".

II. Corporate

Yu Liang

III. Business scope of the company

Business scope: setting up industry (specific projects shall be declared separately); Domestic business; Material supply and marketing industry (excluding franchised, controlled and monopolized goods); Import and export business (according to the provisions of the Shenzhen Economic Development Examination Certificate No.113th foreign trade enterprise examination certificate); Real estate development.

iv. analysis of the company's operation

I. discussion and analysis of the operation

during the reporting period, the Group achieved sales of RMB277.18 billion, up 45.8% year-on-year; Realized operating income of 69.81 billion yuan, down 6.7% year-on-year; The net profit attributable to shareholders of listed companies was 7.3 billion yuan, a year-on-year increase of 36.5%.

according to fortune magazine's list of "top 5 companies in the world in 217" published in July 217, the group ranked 37th in the list of top 5 companies, up 49 places from the previous year.

During the reporting period, Metro Group became the cornerstone shareholder of the Group, indicating that it will support the company's mixed ownership structure, business partner mechanism, urban supporting service provider strategy and stable and healthy development. On June 3, 217, the Board of Directors of the Group was successfully changed. With the support of cornerstone shareholders and the leadership of the new board of directors, the Group will further implement the strategy of "supporting service providers in cities", adhere to the concept of "the road is of course, and the partnership will be inherited", give play to the role of the mainstay of business partners, take customers as the center, continue to create real value and give back to shareholders and society.

(I) Real estate market

During the reporting period, the central government repeatedly proposed to stabilize the real estate market. Under the guiding principle of adapting measures to local conditions and policies for cities, hot cities have successively introduced a series of control measures and achieved remarkable results. The performance of the real estate market has declined steadily, and the overheating situation has been effectively curbed.

The sales scale of commercial housing in China keeps growing, but the growth rate slows down. According to the data of the National Bureau of Statistics, the sales area of commercial housing in the first half of the year was 648 million square meters, and the sales amount was 4.93 trillion yuan, up by 13.5% and 17.9% respectively, and the year-on-year growth rate decreased by 3.4 and 2.3 percentage points respectively compared with the first quarter. In the first half of the year, the approved pre-sale area of commercial housing decreased by 27.2% year-on-year, and the transaction area of commercial housing decreased by 36.1% year-on-year.

affected by the slowdown in new housing transactions, the growth rate of national residential development investment dropped in the second quarter. In the first half of the year, the national residential development investment was about 3.43 trillion yuan, up 1.2% year-on-year, and the growth rate was 1 percentage point lower than that in the first quarter. The newly started residential area in China is about 614 million square meters, up 14.9% year-on-year, and the growth rate is 3.2 percentage points lower than that in the first quarter.

the financing channels in the real estate market are gradually tightening. According to the report of the central bank, in the first half of the year, new real estate loans nationwide reached 3. trillion yuan, a year-on-year growth rate of 2. percentage points lower than that at the end of March. Among them, the growth rate of individual housing loans was 4.8 percentage points lower than that at the end of March. Under the background of strict industry supervision and tight overall funds, the advantages of enterprises that adhere to steady operation and have good credit reputation will be further highlighted.

in terms of the land market, the average transaction price of the above 14 cities is still at a historical high. The land premium rate (the average actual transaction floor price of the land sold/the average starting floor price of the land sold) in the first and second quarters was 25.8% and 4.3%, respectively, but it has dropped significantly compared with the same period last year. The average land price and transaction premium rate in some third-and fourth-tier cities have also increased. As the residential market tends to be stable, it is expected that the land market will also show a cooling trend.

the rational return of the real estate market is conducive to preventing financial risks, extending the development cycle of the industry and providing a favorable opportunity for establishing a long-term mechanism.

among them, it has become an important part of the industry policy to establish a mechanism of both renting and selling to promote the development of rental housing and meet the housing needs of new citizens.

in addition, after more than ten years of large-scale construction, major cities have gradually entered the era of stock houses, and there is room for business development based on stock houses, and the consumption expenditure related to residents' housing continues to grow, which will provide more development opportunities for real estate enterprises.

(II) Main work during the reporting period

The Group is positioned as an urban supporting service provider, and its main business includes real estate development and property services. In the first half of 217, the Group achieved operating income of 69.81 billion yuan, down 6.7% year-on-year; The net profit attributable to shareholders of listed companies was 7.3 billion yuan, a year-on-year increase of 36.5%; The basic earnings per share was .66 yuan, a year-on-year increase of 36.5%; The fully diluted return on net assets was 6.48%, an increase of .99 percentage points over the same period in 216.

V. Recent news of the company

1. The accumulated new loans since October 217 have exceeded 2% of the net assets at the end of last year.

2. Participate in investing in the Chinese Cultural Fund.

VI. Survey of major competitors in the industry