China Vanke : 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

About this Report

Introduction

The 2018 Corporate Social Responsibility Report of China Vanke Co., Ltd. is the 12th CSR report issued by the Vanke Group since 2007. It provides detailed disclosure of Vanke's practice and performance in areas such as operation, environment and society in 2018 based on the principles of objectivity, normativity, transparency and comprehensiveness.

Reporting period	Release cycle
From January 1 to December 31, 2018. To make the report	This is an annual report. The most recent CSR report was released
more comparable and complete, some parts of it may trace	in March 2018.
back to previous years.

Contents

01 Message

02 About Vanke

11 CSR Feature

Reporting scope

The report covers China Vanke Co., Ltd., all subsidiaries of Vanke in the People's Republic of China and Vanke's businesses in the United States, the UK, Singapore, Malaysia and Hong Kong, China.

Preparation basis

The Ten Principles of the UN Global Compact

ISO 26000:2010 -Guidance on social responsibility issued by the International Standardization Organization

GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Reporting Initiative

The Chinese social responsibility standard GB/T 36001-2015Guidance on Social Responsibility Reporting

Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS- CSR4.0) issued by the Chinese Academy of Social Science

Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies

Environmental, Social and Governance Reporting Guide(HK-ESG)issued by Hong Kong Exchanges and Clearing Limited

Corporate Social Responsibility Guidelines of Real Estate Enterprises in Guangdong Province issued by the Guangdong Real Estate Association

Date sources and reliability guarantee

Sources of data used in the report include data made public by governmental bodies, relevant Vanke internal statistical reports, third party surveys, administrative documents and reports and third party comments and interviews. The report was reviewed by the board of directors. Vanke guarantees that the report is free of any false information, misleading information or major omissions.

References

To facilitate presentation and reading, in this report "China Vanke Co., Ltd." is also referred as "Vanke Group", "Vanke", "the Group", "the Company" or "We".

Report access

You may download the Chinese and English editions of this report from Vanke's website at www.vanke.com. For the WeChat version, please follow the WeChat public account of Vanke Weekly. For any questions or suggestions concerning the report, please send an email to csr@ vanke.com, or call us at (86)[phone].

29

Operational Practices

89

Social Practices

	02 Our Performance in 2018
	03	About Vanke
	04	Corporate Governance
	07	CSR Management
33	Residential Business
42	Property Services
49	Rental Housing
51	Commercial Business
57	Logistics Warehousing	65
59	Ski Resorts
63	Standard Office and
	Industrial Park
		Environmental
		Practices

91	Urban Context Protection	121	ESG Index
93	Charity
123	Feedback
105	Fitness Activities
111	Care for Employees
117	Win-win Cooperation

1. Targeted Poverty Alleviation

1. Rural Rejuvenation

1. Housing Industrialization

1. Green Building

1. Green Technology Innovation

1. Green Operation

1. Green Supply Chain
2. Vegetation Conservation
3. Addressing Climate Change

1. Environmental Protection Data

Message Improving the Better life of People is Our Duty

To Vanke, 2018 was an extraordinary year. Facing the ever-changing and unstable external environment and the sluggish market, all Vanke staff united as one and fought ahead hand in hand to write a splendid new chapter of development-we delivered breakthroughs in key performance indicators, and made it to the Fortune Global 500 for the third consecutive year, ranking 332nd. We are deeply indebted to the government, customers, investors and partners for supporting us all the way, and to all our employees for their hard work and commitment!

In 2018, we continued to dig deeper into our positioning as an "urban and rural developer and life services provider", fully honoring our responsibility and mission of meeting people's demand for a better life. The future is bright, and the goal is clear. In the new era, no matter how the outside world changes, we will unswervingly strive to meet people's ever-growing demand for a better life and fulfill our social responsibilities.

We continued to deliver good products and services to meet people's demand for a better life. In terms of products, we proceeded from the true demand of customers, continously trying to identify, understand and meet customers' ever-changing demand, and developed

2018 Vanke Corporate Social Responsibility Report

About Vanke

Our Performance in 2018

Sales Amount

Sales Area

Fortune Global 500 Ranking

benchmark products that could be widely applied. First, we targeted a niche market, continued to "build quality houses for common people, and build houses that are truly applicable", and kept most of our residential apartments of a medium or small size. Second, we enforced strict quality control. While making full use of our "two tools and one form", we comprehensively promoted the use of the engineering management app, and carried out the "Sky-Net Action" across the board to improve engineering quality. Third, we highly valued the creation of a healthy environment. Through the research and development of the Green Research and Development Center, we continuously led the industry in the innovation and upgrading of green technologies, strictly conducted ecological management throughout the whole life cycle of buildings from design to operation, practically saved energy and reduced consumption, and thus created a comfortable and healthy environment. In terms of services, we put customers first and at the center of our services and strive to "deliver more comprehensive, better services for more customers". Concerning residential building development, we continued to upgrade the "6+2" CRM approach, enrich the content of customer services, and widely applied the Mobile Home Inspection app and other new technologies to deliver a more efficient, better customer experience. Thanks to these efforts, our overall customer satisfaction was improved for the third consecutive year. Concerning property management services, we upheld the values of "reassurance, engagement, trust and co-existence", continued to improve the customer service, created a safe and comfortable living environment, organized multi-level and high-quality community exchange activities, and built a community featuring man-nature harmony, mutual help and trust.

Apart from residential buildings and property management services, in 2018, we also tried to "deliver good products and services" in other business lines. Through Port Apartment, we offered a variety of rental products to meet the needs of different customers, trying to tackle problems such as difficulty in renting houses, the poor quality and low cost-effectiveness of rental products. We enriched our commercial product lines to provide customers with high-quality experience, listened to customers' voices through the "Listen to Customers" project, "Chief Experience Officer" and other activities, and made commercial complexes social platforms and living centers for local residents. We set up a logistics and cold chain system that covers all first-tier cities and core inland port cities in China, and continued to promote "intelligent" warehousing services to improve operational efficiency and customer services. We continued to explore the development of ski resorts to meet the emerging needs of people for a healthier and better life, and improve customers' well-being in a safe environment. Based on our deep industrial services and extensive business services, we offered comfortable office services and differentiated office experience to truly meet the needs of customers. Vanke's "good services" have been extended to all scenarios of living and working, and proved to be a good boost of people's quality life.

To bring a better and happier life and to share its development fruits with more people, in 2018, Vanke continued to respond to the call of the CPC Central Committee and the State Council for targeted poverty alleviation and rural rejuvenation, introduced innovative poverty relief patterns, and gave back to society with its expertise. In terms of targeted poverty alleviation, Vanke helped over 230,000 poor people in Tashkurgan Tajik Autonomous County in Xinjiang, Baise in Guangxi, and Nujiang in Yunnan. Vanke assisted the construction of Tibet Intangible Cultural Heritage Museum, a building of Vanke design and Tibetan colors and art on the roof of the world. We also supported the development of Shouning Eastern District Middle School in Fujian, Taheman School in Xinjiang, Zundao School in Sichuan, and many other schools in poverty-stricken villages in Guizhou and Gansu in the form of aided construction or donation. We contributed to the "Beautiful China" education support program and rural teacher support program to sow seeds of advanced education on the barren land. In terms of rural rejuvenation, we supported the rejuvenation of Xinghua in Jiangsu, Heyuan and Shanwei in Guangdong by using our expertise in design, planning and construction. We thus improved the look and infrastructure of local villages, created a more civilized and healthier environment, attracted migrant workers to come back to start their business, and helped locals increase income.

2018 is the first year for Vanke to implement the strategy of becoming an "urban and rural developer and life services provider", and to "stay converged and keep focused to consolidate and improve the fundamentals". Through convergence and concentration, we aim to build up our strategic edge; through consolidating and improving the fundamentals, we want to deliver more good products and services to meet the multi-level and differentiated demands of customers, and thus win the trust and support of customers in the era of word-of-mouth marketing.

Our vision is to take up improving the living quality of people as our duty, lead the industry with high-quality development, and become an outstanding enterprise in the great new era. Looking back on Vanke's 34-year glorious history, there have been hard times, but we always stay true to our original aspirations and dreams and bravely fight forward. In the new era, we will continue to work hard hand in hand and fight for more glories!

We will keep running because we are all dream chasers!

RMB 606.95billion	40.377million m2
14.5%	12.3%
Operating Revenue	Daily Taxes Paid on Average

RMB 297.68billion	RMB 209million
22.6%	34%
Customer Satisfaction	Green Floor Area

89Points	35.016million m2
2 points	19.9%
Number of Qualified Suppliers	Number of Total Employees

1,075104,300

14%

34.2%

332th

25

Contract Residential Project

1,971Communities

683

Ratio of Residential Industrialization to Total Construction Commencement

77%

8.4%

External Donation Amount

RMB 312 million 201.4%

01		Message	02

Company Overview

Vankeof values core The

Together,

for the first time and ranked 356th; in 2017 and 2018, Vanke ranked 307th and 332th respectively in

Company profile

Founded in 1984, Vanke entered the real estate market in 1988. Now it has grown into a leading

domestic urban and rural developer and life services provider over the past three decades. The

Company focuses its business operations on China's three most economically vibrant areas and key

cities in central and western China. In 2016, Vanke was listed into the Fortune Global 500 companies

Never

the list.

Vanke has always insisted on providing good products and services to common people and made

its best contribution to satisfying the people's ever-growing needs for a better life in all aspects. The

Company's core business includes residential development, property management services, and

rental housing. In the field of housing, the Company has always adhered to the residential attributes

of housing, and continued to "build quality houses for common people, and build houses that are

truly applicable". In 2018, Vanke positioned itself as an "urban and rural developer and life services

provider", and the corresponding ecosystem has basically taken shape. On the basis of consolidating

Stop

the inherent advantages of residential development and property services, our business has extended

to commercial development and operation, logistics warehousing services, rental housing, industrial

towns, ski resorts and other fields. At the same time, we actively participate in the mixed-ownership

reform, which has laid a good foundation for better serving the people's needs for a better life and

achieving sustainable development.

Organizational structure

Shareholders' Meeting

Audit Committee

Remuneration and Nomination

Board of Supervisors

Board of Directors

Committee

Investment and Decision-making

Association of

Group Partners

Committee

Center Development Business

Center Management

Center Support

(BG) China Southern

(BG) Shanghai

(BG) China Northern

(BG) China Western and Central

(BG) Division Business Property

(BU) SCPG

(BU) Division Business Logistics

(BU) Division Business Resort Ski

(BU) Division Business Overseas

Headquarters

Business Group (BG)

Business Unit (BU)

Business layout

Over the past 34 years, Vanke's business in the Mainland China has covered four major regions: the Southern China, Shanghai, the Northern China and the Central and Western China (Core development business focuses on China's three most economically vibrant areas-the Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei Region as well as key cities in Central and Western China), and has entered the Hong Kong and overseas markets.

2018 Vanke Corporate Social Responsibility Report

Corporate Governance

Overview of corporate governance

Complying with theCompany Law of the People's Republic of China ,the Securities Law of the People's Republic of China, Code of Corporate Governance for Listed Companies in China, Guiding Opinion on the Establishment of an Independent Director System in Listed Companies, Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies, Appendix XIV Corporate Governance Code and Corporate Governance Report of Stock Exchange of Hong Kong Listing Rules and other laws, regulations and rules, Vanke has established a standardized corporate governance structure and scientific rules of procedure, formulated rules and systems that meet the requirements of the Company's development, clarified the responsibilities and powers of decision-making, execution and supervision, and formed a scientific and effective mechanism of division of responsibilities and checks and balances. The Shareholders' Meeting exercises the right of decision-making specified in relevant laws and regulations, and the Articles of Association of Vanke, deliberating and deciding important issues such as business guidance, financing, investment, and profit distribution; The Board of Directors is accountable to the Shareholders' Meeting, exercising the right of decision-making regarding business operations; The Board of Supervisors is accountable to the Shareholders' Meeting, strengthening the supervision of their operations. Authorized by the board of directors, the management is responsible for organizing and implementing the resolutions adopted by the Shareholders' Meeting and the Board of Directors, and presiding over the daily operation and management of the Company. Detailed information on corporate governance structure, corporate governance mechanism, Vanke's ownership structure, controlling shareholders and actual controllers can be found in the 2018 Annual Report of Vanke.

To enhance operating efficiency, the Board of Directors established three committees on audit, remuneration & nomination, and investment & decision-making. There are 11 directors in the Board with 4 independent non-executive directors (including one female director). The independent non-executive directors serve as the conveners of committees, and hold a majority in the audit committee and the remuneration & nomination committee. Technical proposals shall be approved by the committees before being submitted to the Board of Directors for review, which enables the independent non-executive directors to play a better role in decision-making. Detailed information on the composition and performance of the Board of Directors, the responsibilities of the Board and the management, the composition and division of labor of the specialized committees, and the performance of independent directors can be found in the 2018 Annual Report of Vanke.

The Board of Supervisors adheres to the Company's culture and values in accordance with the relevant provisions of the Company Law and the Articles of Association . In addition to checking and supervising the Company's financial affairs and Executives' performance, it also organizes inspection tours to tighten oversight over subsidiaries' business performance, and safeguard the interests of the Company, shareholders and employees. In 2018, The Company had three supervisors (including one female supervisor). Detailed information on the composition and performance of supervisors and inspection can be found in the 2018 Annual Report of Vanke.

Shareholder communication and participation

Following the Measures for Information Disclosure Management of Vanke , Vanke specified the responsibilities of the Board of Directors and information disclosure departments, in a bid to maximize the functions of the Information Disclosure Committee, enhance information disclosure management, and improve transparency. In 2018, Vanke continuously strengthened the management of information disclosure, and published 591 announcements in and beyond Mainland China to protect investors' right to know. Apart from timely and efficient information disclosure, we also kept our communication and interaction with investors through various channels. In 2018, we conducted and received over 500 visits and calls from investors, attended 40 investor meetings organized by domestic and foreign organizations, organized 12 monthly sales and business meetings, organized 4 performance presentations in and out of China, launched 2 online roadshows targeting medium and small investors, and provided more than 130 answers to medium and small investors through Shenzhen Stock Exchange's interactive online platform. In order to further expand the investor communication channels, the Company launched the "Vanke Investor Relations" WeChat public account at the beginning of 2018 to facilitate investors to access information such as temporary announcements, periodic reports and monthly sales at any time. The page views of WeChat push in 2018 reached 190,000 times. In addition, we also continued to communicate with investors through telephone, email, and online interactive platform, trying to maintain long-lasting trust relationships with our investors. Detailed information on Shareholders' Meeting and investors' engagement in corporate governance can be found in the 2018 Annual Report of Vanke.

03		ABOUT VANKE	04

Case	Vanke Investor Education Base helps deepen the development and ensure healthy operation of the capital
market

Protecting small and medium-sized investors is the cornerstone of the long-term and prudential development of China's multi-level capital market. To meet the requirement of investor protection raised by the China Securities Regulatory Commission (CSRC), Vanke took the initiative to establish an investor education base in 2015 that integrates the functions of knowledge popularization, risk warning, consulting service, and achievement exhibition, and uses modern and interactive equipment to present the development results of the capital market, give lectures, and popularize knowledge about securities and futures. It was licensed as a "National Investor Education Base" by CSRC in 2016. In 2018, Vanke Investor Education Base received 738 delegations and 8,730 visitors, and launched the official website to broaden the publicity channels of investor education. The Base also actively participated in special activities on investor education carried out by CSRC and CSRC Shenzhen. In the investor education and publicity activity themed on "Knowing about Risks, Making Proper Investment Choices, Securing Benefits for Elder Life" in September 2018, the manual ABC about Listed Companies for Elderly Investors , designed and compiled by Vanke Investor Education Base, was recognized and distributed by CSRC Shenzhen for its novel design, plain language, and relevant content, effectively popularizing investment knowledge.

Stadium of Vanke Investor Education Base

		In 2018, Vanke Investor Education Base received 8,730visitors
National Securities and Futures Investor		from 738delegations, including 7,265investors from 710
,
Education Base
China Securities Regulatory CommissionMarch 2016		delegations and 1 465common people from 28delegations.

2018 Vanke Corporate Social Responsibility Report

Internal control and risk management

We have established a complete and effective internal control system in which corporate management and business operations are controlled and supervised systematically, in an effort to ensure legal and compliant operations, asset safety, and the authenticity and completeness of financial reports and relevant information. We adhere to the risk-oriented principle and further strengthen the three- tiered self-assessment system covering headquarters, business groups/business units and front-line subsidiaries, and continuous organize the headquarters functions and front-line subsidiaries to systematically self-evaluate their design and implementation of internal control. In line with the requirements of theCode of Corporate Governance issued by Hong Kong Stock Exchange, we have set up a risk management committee, established a three-tiered risk management framework covering headquarters, business groups/business units and first-line subsidiaries, and issued a risk management manual. We conduct risk investigation and risk visits to headquarters, business groups/business units and first-line subsidiaries, with an aim to identify and evaluate the main risks from the external environment and within the Company, continuously monitor the soundness, rationality and effectiveness of the risk management system, and improve the ability of risk control and prevention. Detailed information on internal control and risk management can be found in the2018 Annual Report of Vanke .

Anti-corruption and anti-fraud

We continue to improve the anti-fraud system in three aspects. First, we strengthen anti-corruption education and case study through integrity publicity, red line education and integrity certification to ensure that every employee receives red line education at least once a year to prevent any intention to defraud; second, we strengthen internal control and fix management loopholes to prevent the same problem from repeating, leaving no room for employees to cheat; third, we combine internal and external resources to work together against fraud, strengthen investigation and punishment, verify every complaint filed in real name, and crack down on every violation of rules and laws to thwart any attempt to cheat.

Vanke holds the "zero tolerance" attitude towards fraud. We establish the Vanke Fraud Reporting Website (http://5198.vanke.com/) to promote the Company's anti-fraud policy, including reporting confidentiality, real-name priority, and rewarding policies, and also accept complaints and reports against employees or units engaging in malpractice, fraud and other violations of professional ethics. According to the three types of sunshine policy, the information of the whistleblowers is strictly confidential, and we give preference to real-name complaints, handle them first, and inform the whistleblowers of the investigation progress and results. At the same time, regardless of the internal staff or external personnel, once verified, we reward them based on the nature and influence of the incident, and their contribution, and also keep them confidential.

In addition, Vanke has set up the audit and supervision function with full-time staff, to perform internal anti-fraud functions, conduct special investigations, and play a supervisory role; through conducting regular application of employees' potential conflict of interest, integrity certification, integrity investigation, signing integrity commitment, etc.，as well as signing the Sunshine Cooperation Agreement with partners and other means, we continue to improve the establishment of Vanke's integrity system, create a healthy and clean business environment, and promote the healthy business development. We have joined forces with several well-known enterprises to launch the China Enterprise Anti-Fraud Alliance which had attracted over 300 enterprises by the end of 2018 and has become an important driving force in purging China's business environment.

Intellectual property protection

We continue to protect and build up our brand. From the group level, we unify strict and standardized management of patents, copyrights, trademarks and other intellectual property rights and employ various means such as dynamic monitoring, investigation and evidence collection, complaints and suggestions, and legal proceedings to protect our brand image and reputation. In 2018, Vanke took the initiative to launch nearly 100 rights protection campaigns against infringement of Vanke's brand in China in accordance with theTrademark Law of the People's Republic of China , thePatent Law of the People's Republic of China , theAnti-UnfairCompetition Law of the People's Republic of China and other laws and regulations. In order to protect the rights and interests of Vanke brand abroad, we have promoted the overseas registration of trademarks such as "Vanke", " 万 科 (Vanke in simplified Chinese)", " 萬 科 (Vanke in traditional Chinese)" and the "Window Paper-Cut Logo". Vanke's trademarks have been registered and protected in nearly 100 countries under the Madrid Agreement Concerning the International Registration of Marks and through registration in individual countries. While safeguarding its own intellectual property rights, Vanke also fully respects the intellectual property rights of others. In addition, Vanke encourages and protects fair competition, prevents unfair competition and tries its best to protect the legitimate rights and interests of others from being infringed upon in accordance with theAnti-UnfairCompetition Law of the People's Republic of China and other relevant requirements.

Responsible marketing

In compliance withMeasures for the Administration of Advance Sale of Urban Commodity Houses , Regulatory Measures on the Sale of Real Estate , Advertising Law of the People's Republic of China andProvisions on the Release of Real Estate Advertisements , Vanke tries its best to provide customers with complete and genuine information to protect their right to know in the process of sale and marketing.

05		ABOUT VANKE	06