This report is the 17th sustainability report issued by China Vanke Co., Ltd., mainly focusing on the disclosure of Vanke Group's philosophy, practices, and effectiveness in environmental, social, and governance (“ESG”) aspects in the year 2024.

In 2024, Vanke encountered dozens of daunting challenges on its path toward sustainable development. Confronted with an intricate landscape, we engaged in deep reflection on the experiences and lessons of our past development, proactively navigating the tough situation. Vanke never wavered, which is evidenced by our proactive adjustment on strategies to optimize resource allocation and enhance operational efficiency through “streamlining procedures” and focusing on principal businesses. Although the road ahead remains arduous, Vanke is committed to forging ahead with unwavering determination, collaborating with all stakeholders to collectively advance toward a sustainable future.

As we navigate the path of operational practices, we delve into enhancing value creation and insist on being a compliant operator in the market

Adhering to the business philosophy of long-termism, in 2024, we integrated sustainable development into the entire chain of our operations. From product development to service delivery, we pledge to provide all stakeholders with “good products” and “good services” while maintaining compliant operation. We have continually reviewed and refined compliance management system, improved risk and crisis management systems, implemented management through regular inspections and audits andbuilt a more comprehensive institutional system. We have also strengthened compliance audits and oversight, and persistently elevated our awareness and management of integrity and compliance. We have adhered to laws and regulations, steadfastly protecting our own intellectual property rights while respecting those of others. We have maintained focus on the core product principles of “quality, health and capability” to craft exquisite offerings. Adhering to the principle of “customer-centric” ethos, we have advanced the “Good Service Action”, continuously enhancing service quality from contract signing to house acceptance and delivery. Concurrently, we have established and refined the information security management system, actively pursued relevant information security certifications, and proactively conducted compliance self-assessments and awareness campaigns to provide impregnable information security for our employees, customers, and partners.

In the realm of environmental practices, we are taking the lead in advocating for green development, positioning ourselves as pioneer in the industry's sustainability endeavours

Against the backdrop of the carbon peaking and carbon neutrality goals and a carbon-neutral economy, we have continued to focus on the green and low-carbon transformation in 2024, regarding green intelligent manufacturing, green operations and green leasing as our key areas, and committing to meeting consumers' demands for green living environments and insisting on the close integration of environmental responsibility and business development. We became a forerunner and demonstrator of sustainable development. We have proactively adopted cutting-edge low-carbon technologies such as photovoltaic power generation, photovoltaic storage as well as on-site recycling of organic waste to support the McDonald's Meisha Vanke Franchise to become the nation's first quick-service restaurant to achieve all four LEED Net Zero certifications and to act as a forerunner and demonstrator of sustainable development. Moreover, we have taken proactive steps to address climate change by exploring the economic opportunities and challenges posed by climate change, aligning with the TCFD framework, analyzing financial implications under climate change and enhancing our climate risk management practices. We were concerned about biodiversity conservation and committed to reducing our dependence on and impact on the nature with a range of work centered on soil remediation and water restoration. We also continuously optimised management in green building, green construction, and green operations, joining hands with our stakeholders to promote green development and contribute to the planet's future.

In terms of social practices, we are creating a better life with all communities and aspiring to be co-builders of society

In terms of talent management, we insist on a “striving for the best as a team” culture, expecting to offer a workplace environment grounded in equality, respect, inclusive, and diversity, providing unlimited possibilities for the growth and development of every employee. Vanke, in 2024, consistently safeguarded employee rights and ensured a healthy and safe working environment, and effectively controlled health and safety risk screenings encompassing all relevant stakeholders through risk assessment and management. Vanke continued the “Talent Training Plan of the Group”, implementing a “3+1” training management system to empower grassroots employees to pursue self-improvement. In terms of supply chain management, we advocated a “win-win partnership” relationship and committed to building a sustainable supply chain system. Through AUPUP, we are creating a new ecosystem for the upstream industry chain and driving the transformation of the industry's supply chain. In terms of co-building of society, Vanke promoted “shared development” to give back to the society the strength and support we have received from it. We also actively engaged in rural ecological revitalisation, endeavoured to promote the building of a beautiful and healthy China. In 2024, our sustainability performance garnered extensive recognition from rating and index agencies globally. Vanke continued to obtain an A+ rating from Hang Seng ESG Rating, maintaining its position as the highest-rated domestic real estate company. We continued to be included in Hang Seng Corporate Sustainability Benchmark Index, Hang Seng (Mainland and HK) Corporate Sustainability Index, Hang Seng Stock Connect China A ESG50 Index and Hang Seng (China A) Corporate Sustainability Index, becoming one of the top 30 companies with the best ESG performance among A-share listed large companies. Meanwhile, we obtained the AA rating of the WIND ESG rating, ranking the first in the industry; AA- rating of CCX ESG rating, ranking the first in the industry; AAA rating of SZSE CNI Index ESG rating, ranking the first in the environmental sector industry; AAA rating of QuantData ESG rating, ranking the first in the industry; and BBB rating of MSCI ESG, maintaining the leading position in the industry. Vanke will stay true to its founding aspirations, continue to pursue the mission of creating a better life for society and advance steadily on the road to sustainability. Together with cities and all stakeholders, we will continue to create more enduring value for society.