Founded in 1984, China Vanke Co., Ltd. began to engage in real estate in 1988, and was the second listed company on the Shenzhen Stock Exchange in 1991. Through the development of more than two decades, Vanke has become the largest residential developer in China, whose business covers 53 large and medium-sized cities in the Pearl River Delta region, the Yangtze River Delta region and the Bohai Economic Rim, as well as central and western parts of China. In the past three years, the average number of homes sold annually has exceeded 60,000. In 2011, sold floor space totaled 10.75 million square meters and sales reached RMB 121.5 billion. In 2012, sales exceeded RMB 140 billion, once again the largest in the global real estate industry.
Vanke became the second listed company on the Shenzhen Stock Exchange in 1991. Its sustained growth as well as standardized and transparent corporate governance structure has been widely recognized among investors. It has been put on Forbes’ 200 Best Small Companies List, Asia’s 200 Best Under A Billion List, and Asia’s Fab 50 Companies List, and presented with best corporate governance awards and best investor relations awards by internationally authoritative media such as IR Magazine.
Over the years, Vanke has adhered to the principle of “hoarding no land, putting off no home sales, and refraining from bidding for highly-priced land” as well as the strategy of obtaining fair returns with its professional competence and based on fast turnover and development. It has always focused on developing mainstream products for average urban residents. In 2011, 89% of the homes sold were apartments below 144m2. Vanke also insists on quick sale and reasonable pricing, and requires all its subsidiaries to sell at least 60% of the new homes coming to the market in the first month. Moreover, it values compliance and does more than seeking high profit margins. It has paid over RMB 50 billion of taxes since 2005, and its annual tax payment is higher than its net profit.
Vanke believes that the cornerstone of its success is the commitment to ethical business conduct and obtaining fair returns with professional competence. Devoted to a corporate culture featuring standardization and transparency and a development pattern featuring steadiness and focus, Vanke has grown into an enterprise most respected by the public and most popular among customers, investors, employees and partners. Thanks to its excellent performance in corporate governance and ethics, Vanke has been honored as one of “China’s Most Respected Companies” for eight consecutive times.
After years of efforts, Vanke has gained a competitive edge in the housing industry. “Vanke” has become the first well-known trademark in the industry, and its sub-brands such as “Wonderland”, “City Garden” and “Golden Homes” are very popular with consumers across China. The “Scenario Garden House” developed by Vanke is the first patented product as well as the first patented invention in China’s housing industry. Vanke’s property management division is among the first ISO9002-certified property service providers in China. The Vanke Property Customers Club is the first customer relations organization in China’s housing industry. In addition, Vanke is the first real estate enterprise in China that hires a third-party institution to carry out an all-round customer satisfaction survey every year.
Since its establishment, Vanke has always stood for “a healthy and enriched life”, and valued the balance between work and life. It provides employees with opportunities for sustainable development, and encourages them to grow together with the company; it also advocates simple interpersonal relationships in the company, and devotes itself to creating a working atmosphere that can help give full play to staff’s talents. In 2011, Vanke was selected as one of the world’s top 25 employers in the Best Employers in APAC 2011 Study organized by Aon Hewitt, a global human resources consulting firm, which makes it one of “China’s Best Employers” for two consecutive years.
Vanke is dedicated to leading the industry in energy conservation and emission reduction, and promoting green buildings and housing industrialization. In 2011, it created 2.737 million square meters of three-star green housing, accounting for 50.7% of the national total. In 2007, the Vanke Architecture Research Center was approved as the national base for housing industrialization by the Ministry of Housing and Urban-Rural Development. In 2009, buildings B3# and B4# of Beijing Vanke COFCO Scenic Holiday were honored as “Beijing’s Housing Industrialization Pilot Projects”. The Dongguan Vanke Building Technology Co., Ltd. has obtained the high-tech enterprise certificate jointly issued by the Guangdong Provincial Department of Science and Technology, the Department of Finance of Guangdong Province, the Guangdong Provincial Office of SAT, and the Guangdong Local Taxation Bureau, which makes it the first certified high-tech enterprise in the housing industry. In 2011, construction was started to build 2.72 million square meters of prefabs.
Vanke has been committed to improving product quality. Up to 2011, 26 of its projects had won China Civil Engineering Zhan Tianyou Award “Outstanding Community Gold Award”. Among the projects, Tianjin Vanke Crystal City, Guangzhou Wonderland, Zhongshan City Scenery were presented with China Civil Engineering Zhan Tianyou Award successively.
During its development, Vanke has made active efforts to fulfill its social responsibility. In the year of 2008, Vanke Foundation was established upon the approval of the Ministry of Civil Affairs and the State Council. So far, donations for charity projects have exceeded RMB 59.07 million. In 2011, RMB 17.95 million was provided to finance projects mainly on the treatment of serious illnesses of impoverished children and environmental protection.
Every day there are hundreds of thousands of people working hard on the construction sites of projects developed by Vanke, the biggest real estate developer in China. Illness-caused poverty has brought about many problems, producing bad influence on the workers’ families and their children’s education and growth. Vanke is always concerned about all these problems. In April 2011, Vanke announced that RMB 5 million would be spared from its Corporate Citizenship Fund to initiate the Spring Action project, as approved by the General Meeting of Shareholders. This project was to help labor workers who can’t afford the high cost of treating the serious illnesses of their own or their spouses and children, or their children’s education. In addition, it worked together with construction contractors and other partners to establish a mechanism for labor workers to help each other.
Vanke Foundation started to help impoverished children with congenital heart disease by funding their surgeries in June 2008. Within 30 months, nearly 1,700 children across China had free surgeries with Vanke’s financial aid. With a responsible attitude towards donors, Vanke Foundation organizes volunteers to pay visits and revisits to the children, to ensure that timely assistance is provided to the neediest children.
Vanke has always focused on giving full play to its advantages in the field of real estate and fulfilling its social responsibility. To support government policy, it has actively participated in the building of affordable housing since 2006. In 2007, The Commune was completed in Guangzhou as the first low-rent housing project sponsored by an enterprise to address the housing needs of low-incomers. It is also listed as a pilot low-rent housing project for low-incomers by the Housing and Urban-Rural Development Department of Guangdong Province. Over the three years since it was completed, The Commune has provided not only homes for nearly 1,800 people, but also valuable experience for the promotion of low-rent housing nationwide. As a successful example in the field of low-rent housing, it has attracted great attention and received great acclaim from all sectors. Now the total floor space of Vanke’s affordable housing projects completed and under construction stands at 3.67 million square meters.
In 2008, Vanke donated RMB 124 million to construct public buildings in some of the areas heavily hit by the Wenchuan Earthquake such as Mianzhu and Dujiangyan. It took 17 technical measures to improve the structural safety of the buildings and ensure the highest level of earthquake resistance. Moreover, a lot of attention was given to disaster mitigation, disaster preparedness and shelter seeking.