Vanke was established in shenzhen since 1984, and after 30 years of development, it has become a leading city and town developer and service provider in China. As I mentioned before, Shenzhen is an amazing city, which created great companies in its short history, for example, Tencent as the largest social and connecting platform, Ping An as the leading retail finance group in China, Huawei as the leading telecom infrastructure provider globally.
The founder of Vanke is Wang Shi, like Jack Ma and Ren Zhengfei, is an enterpreneur star. In 1980, most Chinese people have no idea about comanpy. However, Wang Shi promote standardized and transparent corporate governance structure in Vanke, and Vanke became the second listed company on the Shenzhen Stock Exchange in 1991.
Vanke has been persistently “building quality housing for ordinary people to live in” from the beginning. The main products of the Group’s property development business are residential properties and commercial auxiliary facilities. Among the products sold in 2018, residential properties, retail and office properties, and other auxiliary facilities accounted for 84.9%, 11.5% 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 2018, the small and medium-sized units under 144 sq.m. accounted for 91.4% of the total. And this figure has exceeded 90% every year in each of the past 6 years.
Vanke’s share in the commodity housing market in China had risen to 4.05%, representing an increase of 0.95% percentage point as compared to that of the corresponding period in 2016. In 2018, Vanke topped the sales volume in 24 cities in China. Furthermore, the Company paid constant attention to investment opportunities in overseas markets. By the end of 2018, it had already entered eight cities overseas, namely New York, San Francisco, Los Angeles, Seattle, London, Moscow, Singapore, and Kuala Lumpur etc.
While consolidating its existing advantages of residential property development and property service, Vanke’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 Vanke to better satisfy people’s needs for a good life and to achieve sustainable development.
As from 2018 annual report, we can see the property development business almost takes major part of the whole revenue, and Vanke invest a lot in commercial, rental housing, and other business to expand further income streams.
Why Vanke can be the leading property developer in China? I have three reasons from my perspectives:
Firstly, Vanke 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 realize Vanke’s dream of quality in the new era, and to improve quality, efficiency, and to reduce consumption and emission, and reliance on handwork.
Secondly, Vanke 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”.
Last but not least, 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”, 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 future, with “people’s needs for a good life” as the core and cash flow as the basis, Vanke 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”. Vanke would constantly create more true value and strive to be a respectable enterprise in this great new era.