Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CHINA VANKE CO., LTD.*

萬科企業股份有限公司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2202)

2019 THIRD QUARTERLY REPORT

The board of directors (the "Board") of China Vanke Co., Ltd.* (the "Company" or "Vanke") is pleased to announce the unaudited quarterly report (the "Quarterly Report" or the "Report") of the Company and its subsidiaries (collectively, the "Group") for the three months and nine months ended 30 September 2019, which has been prepared in accordance with International Financial Reporting Standards ("IFRSs"). This announcement is made pursuant to the inside information provisions set out in Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and the requirements under Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

§1 IMPORTANT NOTICE

  1. The Board, the supervisory committee and the directors (the "Director(s)"), supervisors and senior management of the Company guarantee the truthfulness, accuracy and completeness of the contents of the Report, and that there is no false representation, misleading statement or material omission in the Report, and accept full legal responsibilities for the Report jointly and severally.
  2. The Quarterly Report was approved at the twenty-third meeting of the eighteenth session of the Board (the "Meeting") of the Company. Mr. KANG Dian, an independent non-executive Director, was not able to attend the Meeting in person due to business engagements and authorised Ms. LIU Shuwei, an independent non-executive Director, to represent him and vote on his behalf at the Meeting. All other Directors attended the Meeting in person.
  3. Mr. YU Liang, the Chairman of the Board, Mr. ZHU Jiusheng, the President and Chief Executive Officer of the Company, and Mr. WANG Wenjin, an Executive Vice President and Financial Principal of the Company declare that the financial statements contained in the Quarterly Report are warranted to be true, accurate and complete.

1

  1. The financial and accounting statements contained in the Quarterly Report of the Group have been prepared in accordance with the IFRSs and have not been audited.
  2. Unless otherwise indicated, Renminbi is the reporting currency in the Quarterly Report. The "Reporting Period" refers to 1 July to 30 September of 2019.
  3. This Report includes forward-looking statements of future plans and development strategy, which does not constitute the Group's actual undertakings to investors. Investors are advised to exercise caution towards investment risks.

§2 BASIC CORPORATE INFORMATION

2.1 Major accounting data and financial indicators

Unit: RMB'000

As at

As at

30 September

31 December

2019

2018

Change

Total assets

1,638,837,123

1,528,663,415

7.21%

Total equity attributable to equity

  shareholders of the Company

167,273,827

155,764,132

7.39%

Share capital

11,302,143

11,039,152

Increase of

262,991,000

shares

Jul. to Sep.

Jan. to Sep.

YOY

2019

YOY change

2019

change

Revenue

84,594,680

21.74%

223,914,757

28.43%

Profit for the period attributable

  to equity shareholders of the

  Company

6,398,993

31.64%

18,240,745

30.43%

Net cash (used in)/generated

  from operating activities

(7,118,699)

66.85%

1,734,411

106.74%

Basic earnings per share (RMB)

0.566

28.58%

1.631

28.73%

Diluted earnings per share

(RMB)

0.566

28.58%

1.631

28.73%

Weighted average return

3.91%

Increased

11.16%

Increased

  on equity

by 0.37

by 1.12

percentage

percentage

point

points

Note: The equity and earning/return used in the above calculation refer to the net equity attributable to equity shareholders of the Company and the profit for the period attributable to equity shareholders of the Company respectively.

2

2.2 Total number of shareholders and shareholdings of the top 10 holders of non-restricted shares as at the end of the Reporting Period

Unit: Share

Total number of ordinary

290,546 (including 290,500

Total number of preference

0

shareholders as at the end

holders of A shares and 46

shareholders with restored

of the Reporting Period

holders of H shares)

voting rights at the end of the

Reporting Period (if any)

Shareholdings of the top 10 shareholders

Number of

Pledged or lock-up

Classification of

Percentage of

Total number

restricted

Share

Number

Name of shareholder

shareholder

shareholdings

of shares held

shares held

status

of shares

Shenzhen Metro Group Co., Ltd.

Domestic state-owned

28.69%

3,242,810,791

0

-

0

  ("SZMC")

legal person

HKSCC NOMINEES LIMITED

Overseas legal person

13.96%

1,577,885,274

0

-

0

Note 1

Shenzhen Jushenghua Co., Ltd.

Domestic non-state-

7.08%

799,741,909

0

Pledged

799,334,627

("Jushenghua") Note 2

owned legal person

Anbang Life Insurance Co., Ltd.

Others

4.29%

484,693,983

0

-

0

- Conservative Investment

Portfolio Note 3

Guosen Securities -Industrial and

Others

4.04%

456,993,190

0

-

0

Commercial Bank of China -

Guosen Jinpeng No.1 Classified

Collective Asset Management

Plan

Hong Kong Securities Clearing

Others

3.73%

421,222,293

0

-

0

Company Ltd. Note 4

CMS Wealth -CMB - De

Others

2.91%

329,352,920

0

-

0

Ying No. 1 Specialised Asset

Management Plan

Foresea Life Insurance Co., Ltd. -

Others

2.86%

323,100,542

0

-

0

Hai Li Nian Nian

Central Huijin Asset Management

Domestic state-owned

1.68%

189,566,000

0

-

0

Co., Ltd.

legal person

Industrial and Commercial Bank

Others

1.51%

170,960,200

0

-

0

of China Limited-Ping An Zhong

Zheng Trading Index Securities

Investment Open-ended Fund

On Development Of The

Guangdong-HongKong-Macao

Greater Bay Area

3

Shareholdings of the top 10 holders of non-restricted shares

Number of

Name of shareholder

non-restricted shares held

Class of shares

SZMC

3,242,810,791

Ordinary RMB-denominated

shares ("A shares")

HKSCC NOMINEES LIMITED

1,577,885,274

Overseas listed foreign shares

(H shares)

Jushenghua

799,741,909

A shares

Anbang Life Insurance Co., Ltd. - Conservative

484,693,983

A shares

Investment Portfolio

Guosen Securities - Industrial and Commercial

456,993,190

A shares

Bank of China - Guosen Jinpeng No.1

Classified Collective Asset Management Plan

Hong Kong Securities Clearing Company Ltd.

421,222,293

A shares

CMS Wealth -CMB - De Ying No. 1

329,352,920

A shares

Specialised Asset Management Plan

Foresea Life Insurance Co., Ltd. - Hai Li Nian

323,100,542

A shares

Nian

Central Huijin Asset Management Co., Ltd.

189,566,000

A shares

Industrial and Commercial Bank of China

170,960,200

A shares

Limited-Ping An Zhong Zheng Trading Index

Securities Investment Open-ended Fund

On Development Of The Guangdong-Hong

Kong-Macao Greater Bay Area

Remarks on the connected relationship or

1.

Jushenghua holds 51% equity interests in Foresea

action in concert of the aforementioned

Life Insurance Co., Ltd.

shareholders

2.

Save as aforesaid, it is not known to the Company as

to whether there are connections or persons deemed

to be acting in concert under the Measures for the Administration of the Takeover of Listed Companies among the abovementioned shareholders.

4

Top 10 ordinary shareholders involved in

Nil

margin trading business (if any)

Statements on the transaction of shares under

Nil

agreements to repurchase of the top 10 holders

of ordinary shares and top 10 holders of non-

restricted ordinary shares during the Reporting

Period (if any)

Notes:

  1. HKSCC NOMINEES LIMITED is the nominee holder of non-registered shareholders of the H shares of the Company.
  2. On 13 October 2019, Jushenghua disclosed the change of its holding of interest in Vanke at website of HKExnews (www.hkexnews,hk). Jushenghua, together with its person acting in concert, held 1,352,836,874 shares of the Company, representing 11.97% of total share capital of the Company as at 11 October 2019.
  3. In August 2019, Anbang Life Insurance Co., Ltd. has been renamed as Dajia Life Insurance Co., Ltd*, after obtaining the approval from China Banking and Insurance Regulatory Commission.
  4. Hong Kong Securities Clearing Company Ltd. is the nominee holder of A shares of the Company held by non- registered shareholders through the Shenzhen-Hong Kong Stock Connect.
  5. "The 290,500 holders of A shares" in the above table refers to the number of shareholders combining the securities margin trading credit accounts.

As of 30 September 2019, the total number of shares of the Company was 11,302,143,001, including 9,724,196,533 A shares and 1,577,946,468 H shares.

2.3 Number of preferred shareholders and shareholdings of top 10 preferred shareholders

Applicable

Not Applicable

5

§3 OPERATIONS DISCUSSION AND ANALYSIS

1. Property market in the third quarter

During the Reporting Period, pursuant to the requirement of the principle of "houses are for living in, not for speculation", local governments introduced policies aligning with local conditions with an aim to "stabilize housing price, land premium and expectation" to promote the stable operation of the property market.

According to the statistics of National Bureau of Statistics, from January to September, the sales area of commodity housing in China amounted to 1,190 million sq m, representing a 0.1% year-on- year decrease, with a sales amount of RMB11.1 trillion, up by 7.1% year-on-year; among which the sales area of commodity housing in China in the third quarter increased 2.9% year-on-year and the sales amount increased by 9.7% year-on-year.

In the third quarter, for the 14 cities1 under the Company's ongoing and focused observation, the area of commodity housing sold increased by 2.5% year-on-year. As at the end of the Reporting Period, the digestion cycle of the inventory of new housing available for sale (area with sales permits but had yet to be sold) in the above-mentioned cities was about 10.2 months.

The total investment in property development in China from January to September increased by 10.5% year-on-year, which was 0.4 percentage point lower than the growth rate of the first half of 2019. The area of new housing construction in China increased by 8.6% year-on-year, which was 1.5 percentage points lower than the growth rate of the first half of 2019.

The land market cooled down. According to the statistics from China Index Academy, the average premium rate of residential land in 300 cities in the third quarter was 11.6%, which was 8.6 percentage points lower than the average premium rate of the first half of 2019.

Financial supervision targeted at the property industry continued to be tightened. According to the report of the People's Bank of China, as at the end of September, the balance of property loans recorded a year-on-year growth rate of 15.6%, which was 4.4 percentage points lower than the growth rate at the end of last year.

1 Beijing, Shanghai, Shenzhen, Guangzhou, Tianjin, Shenyang, Hangzhou, Nanjing, Chengdu, Wuhan, Dongguan, Foshan, Wuxi, Suzhou

6

2. Business development of the Group during the Reporting Period

  1. Key financial guidance
    In the third quarter, the revenue of the Group amounted to RMB84.59 billion, representing a year-on-year increase of 21.7%; the net profit attributable to equity shareholders of the

Company amounted to RMB6.40 billion, representing a year-on-year increase of 31.6%. The booked area of the property development business amounted to 6.087 million sq m, with

  1. revenue of RMB79.58 billion, representing year-on-year increases of 5.1% and 20.8% respectively.

From January to September, the accumulated revenue of the Group amounted to RMB223.91 billion, representing a year-on-year increase of 28.4%; the net profit attributable to equity shareholders of the Company amounted to RMB18.24 billion, representing a year-on-year increase of 30.4%; the booked area of the property development business amounted to 14.550 million sq m, with a revenue of RMB212.57 billion, representing year-on-year increases of 13.6% and 28.5% respectively.

From January to September, the estimated gross profit margin of the Group's property development business was 27.0%, representing a decrease of 1.2 percentage points when compared with that of the same period last year.

In view of the property market adjustments in certain cities, the Group made inventory impairment provision for individual projects with risks. As of the end of September, the balance of the Group's inventory impairment provision amounted to RMB3.06 billion. During the Reporting Period, the Group appropriated inventory impairment provision of RMB1.14 billion, which led to an impact on net profit attributable to equity shareholders of the Company of RMB0.78 billion.

The Group insisted on the creation of true value with emphasis on liquidity, and maintained sound financial and capital positions. As at the end of September, the cash and cash equivalents held by the Group amounted to RMB107.24 billion, much higher than the sum of short-term borrowings and interest-bearing liabilities due within one year of RMB59.08 billion; among the interest-bearing liabilities, 74.0% was long-term liabilities.

  1. Major operations
    The Group has always adhered to a proactive sales strategy. During the third quarter, the Group's property development business achieved a contracted sales area of 9.115 million sq m and a contracted sales amount of RMB141.61 billion, representing year-on-year increases of 5.2% and 11.6% respectively. From January to September, the Group achieved an accumulated contracted sales area of 30.616 million sq m and contracted sales amount of RMB475.61 billion, representing year-on-year increases of 5.5% and 10.2% respectively.

7

As at the end of September, the resources sold but not completed for recognition in the Group's consolidated financial statements amounted to 44.743 million sq m, with a total contracted amount of approximately RMB636.24 billion, representing increase of 20.6% and 19.9% respectively as compared to those at the beginning of the year.

The Group continued to adhere to its prudent investment strategies, and on the premise that prices were reasonable, actively explored various potential investment opportunities. In the third quarter, the Group acquired 62 new property development projects, with a total gross floor area ("GFA") of approximately 14.790 million sq m and a planned GFA attributable to the Company's equity holding of approximately 11.553 million sq m; from January to September, the Group acquired a total of 116 new property development projects, with a total GFA of 28.321 million sq m and a planned GFA attributable to the Company's equity holding of 20.420 million sq m. In terms of equity investment amount, 81% was located in first and second tier cities.

As at the end of September, the total GFA of the Group's projects under construction was approximately 105.878 million sq m, of which the GFA attributable to Vanke's equity holding was approximately 62.754 million sq m; the total GFA of projects under planning was approximately 55.942 million sq m, of which the GFA attributable to Vanke's equity holding was approximately 36.294 million sq m. In addition, the Group also participated in certain urban renewal projects, of which the aggregate GFA attributable to the Company's equity holding was approximately 3.414 million sq m according to current planning.

From January to September, the floor area of new construction of the Group amounted to 32.434 million sq m, and accounting for 89.9% of the floor area of new construction planned for the full year; completed floor area was 16.401 million sq m, representing a year-on-year increase of 5.5% and accounting for 53.3% of the planned floor area to be completed for the full year.

The Group adhered to the strategic position of a "city and town developer and service provider". While consolidating its edges in residential development, the Group had been actively developing businesses such as property services, rental housing, retail property development and operation, logistics and warehousing services, standard office and industrial park and ski resort, addressing people's growing demands for better life quality.

During the Reporting Period, the brand value of Vanke Service Development Co., Ltd. ranked first in the "2019 Property Service Brand Value Study Results List" from China Index Academy. At the same time, it won a number of awards, including "2019 Specialized Operational Leading Brand of China Property Service Companies", "2019 Leading Brand of China Property Service Companies in terms of Service Quality" and "2019 Platform Leading Brand of China Property Service Companies" as well as the title of "2019 Most Influential Property Service Brand of Property Developers".

8

As at the end of September, the rental housing business of the Group had accumulated approximately 98,000 units in operation; during the Reporting Period, the Group had successfully issued the second phase of the 2019 corporate bonds designated for rental housing, with an issue size of RMB2.5 billion and a coupon rate of 3.55%.

SCPG Holdings Co., Limited ("SCPG") is the retail property development and operation platform of the Group. During the Reporting Period, SCPG was awarded the name of "2019 Leading Brand of China Retail Property Companies" in the 2019 China Real Estate Brand Value Study Results Presentation.

During the third quarter, the Group's logistics and warehousing services business acquired 4 new projects, with a total GFA (GFA of leasable properties) of approximately 270,000 sq m. As at the end of September, the total GFA of logistics and warehousing services business amounted to approximately 9.98 million sq m.

The Group constantly paid attention to the development of stakeholders and practically fulfilled its social responsibilities. Due to the contribution in terms of targeted poverty alleviation and rural revitalization, Mr. YU Liang, Chairman of the Board of the Company was awarded the "Anti-poverty Effort Contribution Award in China of 2019" by the State Council Leading Group Office of Poverty Alleviation and Development.

§4 SIGNIFICANT EVENTS

4.1 Significant changes and reasons for such changes in major items of the accounting statements and financial indicators

Unit: RMB'000

Change

Item

30 Sep. 2019

31 Dec. 2018

(+/-)

Remarks

Deferred tax assets

21,582,290

15,749,205

37.04%

Increase in provision for

settlement of Land

Value-added Tax

Contract assets

2,919,536

1,364,127

114.02%

Growth in entrusted

construction business

Other current assets

2,386,432

12,600,806

-81.06%

Wealth management due

for redemption

Cash and cash equivalents

96,061,793

175,668,164

-45.32%

Increase in construction and

land premium

Deferred tax liabilities

409,177

622,971

-34.32%

Decrease in deferred tax

  liabilities in respect of the

contract costs

Investment properties

93,669,117

25,897,948

261.69%

Effect of change in accounting

Lease liabilities

23,362,180

-

N/A

policy

Other non-current assets

6,384,228

35,982,967

-82.26%

9

Unit: RMB'000

Jan. - Sep.

Jan. - Sep.

Change

Item

2019

2018

(+/-)

Remarks

Other net income

3,602,611

2,185,504

64.84%

Decrease in exchange losses

Administrative expenses

(10,626,645)

(7,910,657)

34.33%

Expansion of operation scale

  of the Company

Other operating expenses

(1,637,153)

(3,759,696)

-56.46%

Decrease in provisions

Income tax

(30,961,459)

(20,169,144)

53.51%

Increase in taxable profit

4.2 Update on significant events and analysis of their effects and solutions

No.

Description of Item

  1. Arrangements for payment of 2018 final dividend. The Company proposed to pay a final dividend for the year ended 31 December 2018 in cash of RMB1.045102 per share (inclusive of applicable tax) to the shareholders of the H shares of the Company whose names appear on the register of members of the H shares of the Company at the close of business on Wednesday, 24 July 2019. Such payment has been completed on 15 August 2019.
  2. "19 Vanke 02" corporate bonds specialized in rental housing with a final issue size of RMB2.5 billion and a term of five years (attached with option for the Company to adjust coupon rate and option for investors to sell back at the end of the third year), and a coupon rate of 3.55% was issued between 25 September 2019 and 26 September 2019.
  3. On 16 October 2019 to 17 October 2019, the Company issued the first tranche of super and short term commercial papers of 2019 in the amount of RMB500 million, a coupon rate of 3.18% and a term of 270 days.

4.3 Overdue undertakings of the Company's de facto controller, shareholders, connected parties, purchasers and the Company during the Reporting Period

Applicable

Not Applicable

During the Reporting Period, there were no overdue undertakings of the Company's de facto controller, shareholders, connected parties, purchasers and the Company.

10

4.4 Estimates on the operating results of the year of 2019

Warnings on any potential loss in accumulated net profits from the beginning of the year to the end of the next reporting period or any material change as compared with that in the same period of last year and the reasons

Applicable

Not Applicable

4.5 Investment of securities

Unit: RMB'000

Book Value

Change of

Initial

Shareholding

ownership

Stock

at the end of

Gain or Loss in

Stock Name

Investment

Percentage in

interest during

Code

the Reporting

the year

Amount

the company

the Reporting

Period

Period

0267.HK

CITIC

509,673

approximately

491,511.85

(95,508.76)

-

Limited

0.19%

Total

509,673

approximately

491,511.85

(95,508.76)

-

0.19%

4.6 Investment in Derivatives

Remarks on risk analysis and management of derivative positions during the Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk and legal risk, etc.)

As of the end of the Reporting Period, the Group's derivative financial instruments mainly included Cross Currency Swap (CCS) and Interest Rate Swap (IRS). The risks faced by CCS are related to exchange rate market risks and the certainty of the Group's future foreign currency debt cash flows. The risks faced by IRS are related to the interest rate market risk and the certainty of the Group's future foreign currency debt interest cash flow. The Group's control measures on derivative financial instruments are mainly reflected in: For derivatives trading, the Group strictly regulates the authorization and business operation procedures, carefully selects and determines the types and quantities of new derivative financial instruments, and strictly controls the credits level of the Group and related entities.

With regards to the change in market price or fair value of the derivatives invested during the Reporting Period, specific method, related assumptions and parameters for analysis of the fair value of derivatives should be disclosed

During the Reporting Period, CCS due for settlement this year brought a profit of RMB4.3759 million to the Company.

11

The fair value of IRS and CCS at the end of the Reporting Period was determined by reference to the market quotation of external financial institutions.

Remarks on whether there has been a material change in the accounting policy and accounting measurement principles for the Company's derivatives during the Reporting Period as compared with those of the previous reporting period

NIL.

Specialized opinion of the independent non-executive Directors on derivative investment and risk control of the Company

The independent non-executive Directors of the Company are of the view that the Company standardizes derivatives investment, follows the principle of prudence and mitigates possible losses associated with foreign currency loans in the event of significant change in exchange rates or interest rates via IRS, CCS and other financial derivatives, in accordance with the actual situation of business operations and the relevant regulations of the regulatory authorities. The relevant arrangements of the Company had been prudent and reasonable.

Derivative positions as at the end of the Reporting Period

Unit: RMB'0000

Contract amount as

Contract amount as at

Contract amount

Profit or loss during

a percentage of the

Type of contracts

the beginning of the

as at the end of the

Company's net assets

the year

year

Reporting Period

as at the end of the

Reporting Period

IRS

438,600.00

455,550.00

-

1.86%

CCS

2,017,208.16

2,078,832.43

437.59

8.49%

DF

601,177.50

-

-

-

Total

3,056,985.66

2,534,382.43

437.59

10.35%

Note: During the Reporting Period, there was no change to amount of the IRS and CCS. But due to exchange rate fluctuation, there was a minor difference in the contract amount at the end of September 2019 as compared to the amount at the beginning of the period when converted into RMB.

12

4.7 Meetings with researchers, communications activities and visits during the Reporting Period

Type of meeting

Time

Location

Approach

Type of investors

Issues discussed and

Information provided

Haitong Securities Meeting

2019.7

Shanghai

Face to Face

Investors including securities

companies, funds and etc.

Interim Results Presentation

2019.8

Shenzhen (Shanghai, Beijing),

Face to Face

Investors including securities

Hong Kong

companies, funds and etc.

CLSA Meeting

2019.9

Hong Kong

Face to Face

Investors including securities

companies, funds and etc.

Note: The abovementioned meetings included one-on-one meetings, small group meetings and large group presentation. The Company received

or met with investors from over 50 companies.

1.

Major issues

discussed:

Securities companies

During the

Anshan, Beijing, Chengdu, Dalian,

Small Group

Changjiang Securities, CITIC

1)

The Company's

Reporting

Dongguan, Foshan, Fuzhou,

or one-on-

Securities, CICC, Tianfeng

daily operations;

Period

Guangzhou, Guiyang, Harbin,

one

Securities, Mitsubishi UFG

2)

The Company's

Hangzhou, Jinan, Jiaxing, Kunming,

Securities, Ping An Securities,

development

Lanzhou, Nanjing, Ningbo, Qingdao,

Huatai Financial Holdings (Hong

strategies;

Shanghai, Shenzhen, Shenyang,

Kong), Haitong Securities,

3)

The Company's

Suzhou, Taiyuan, Tianjin, Wuxi,

Guotai Junan, GF Securities,

opinions about the

Wuhan, Xi'an, Yantai, Changchun,

Okasan Securities, Orient

industry.

Changsha, Zhengzhou, Chongqing,

Securities, Founder Securities,

Zhuhai

Shenyin Wanguo, Guosen

2.

Major information

Securities, Credit Suisse Founder

Securities, Pacific Securities,

provided:

published

Citi Research, BCP Securities,

information

etc.

including the

Funds and other investment

During the

Zhuhai, Harbin, Changchun,

Small Group

Greenwoods Asset, BOCOM

Company's regular

companies and individual

Reporting

Shanghai, Beijing, Chengdu,

or one-on-

Fund, Baoying Fund, Orient

reports.

investors

Period

Dalian, Dongguan, Suzhou, Foshan,

one

Securities Asset Management,

Changsha, Fuzhou, Guangzhou,

Danske Bank, ABC-CA Fund,

Guiyang, Hangzhou, Jinan,

J.P. Morgan, UBS Asset

Kunming, Lanzhou, Nanjing,

Management, Brilliance Capital

Ningbo, Qingdao, Shenzhen,

Management, etc.

Shenyang, Taiyuan, Tianjin,

Wuxi, Wuhan, Xi'an, Zhengzhou,

Chongqing

13

  1. Illegal external guarantees
    The Group had no illegal external guarantees during the Reporting Period.
  2. Non-operatingcapital of the Group attributable to the controlling shareholders and their related parties

The Company has no controlling shareholder. During the Reporting Period, the Group had no capital which was non-operating attributed to the largest shareholder and its related parties.

§5 APPENDIX - FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH THE IFRSS

The financial statements prepared in accordance with the IFRSs are set out in Appendix I to this announcement.

By order of the Board

China Vanke Co., Ltd. *

YU Liang

Chairman of the Board

Shenzhen, the PRC, 24 October 2019

As at the date of this announcement, the Board comprises Mr. YU Liang, Mr. WANG Wenjin and Mr. ZHANG Xu as executive Directors; Mr. LIN Maode, Mr. CHEN Xianjun and Mr. SUN Shengdian as non- executive Directors; and Mr. KANG Dian, Ms. LIU Shuwei, Mr. NG Kar Ling, Johnny and Mr. LI Qiang as independent non-executive Directors.

  • For identification purpose only

14

APPENDIX I

The unaudited consolidated results of the Group for the three months ended 30 September 2019 and the comparative figures for the corresponding period in 2018 are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019

Three months ended

30 September

2019

2018

RMB'000

RMB'000

(Unaudited)

(Unaudited)

Revenue

84,594,680

69,485,935

Cost of sales

(55,640,751)

(45,352,422)

Gross profit

28,953,929

24,133,513

Other net income

1,191,842

497,257

Selling and marketing expenses

(2,127,088)

(1,677,175)

Administrative expenses

(3,587,077)

(3,179,924)

Other operating expenses

(743,234)

(2,931,185)

Profit from operations

23,688,372

16,842,486

Finance costs

(2,153,824)

(2,468,363)

Share of profits less losses of associates and joint ventures

192,146

1,810,417

Profit before taxation

21,726,694

16,184,540

Income tax

(12,421,954)

(7,909,342)

Profit for the period

9,304,740

8,275,198

Attributable to:

Equity shareholders of the Company

6,398,993

4,860,817

Non-controlling interests

2,905,747

3,414,381

Profit for the period

9,304,740

8,275,198

Basic earnings per share (RMB)

0.57

0.44

15

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019

Three months ended

30 September

2019 2018

RMB'000 RMB'000 (Unaudited) (Unaudited)

Other comprehensive income for the period

(after tax and reclassification adjustments)

Items that will not be reclassified to profit or loss:

Equity investments at fair value through other comprehensive income

- net movement in fair value reserve

123,687

(121,380)

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of financial statements of overseas

subsidiaries

21,936

(20,572)

Cash flow hedge: net movement in the hedging reserve

11,695

147,059

Share of other comprehensive income of associates

-

(2,899)

Other comprehensive income for the period

157,318

2,208

Total comprehensive income for the period

9,462,058

8,277,406

Attributable to:

Equity shareholders of the Company

6,525,960

4,838,343

Non-controlling interests

2,936,098

3,439,063

Total comprehensive income for the period

9,462,058

8,277,406

16

The unaudited consolidated results of the Group for the nine months ended 30 September 2019 and the comparative figures for the corresponding period in 2018 are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

Nine months ended

30 September

2019

2018

RMB'000

RMB'000

(Unaudited)

(Unaudited)

Revenue

223,914,757

174,345,060

Cost of sales

(144,473,960)

(114,840,718)

Gross profit

79,440,797

59,504,342

Other net income

3,602,611

2,185,504

Selling and marketing expenses

(5,313,612)

(4,485,487)

Administrative expenses

(10,626,645)

(7,910,657)

Other operating expenses

(1,637,153)

(3,759,696)

Profit from operations

65,465,998

45,534,006

Finance costs

(7,013,706)

(6,142,025)

Share of profits less losses of associates and joint ventures

1,099,584

2,574,961

Profit before taxation

59,551,876

41,966,942

Income tax

(30,961,459)

(20,169,144)

Profit for the period

28,590,417

21,797,798

Attributable to:

Equity shareholders of the Company

18,240,745

13,984,560

Non-controlling interests

10,349,672

7,813,238

Profit for the period

28,590,417

21,797,798

Basic earnings per share (RMB)

1.63

1.27

17

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

Nine months ended

30 September

2019 2018

RMB'000 RMB'000 (Unaudited) (Unaudited)

Other comprehensive income for the period

(after tax and reclassification adjustments)

Items that will not be reclassified to profit or loss:

Equity investments at fair value through other comprehensive income

- net movement in fair value reserve

507,973

(136,332)

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of financial statements of overseas

subsidiaries

126,286

(51,516)

Cash flow hedge: net movement in the hedging reserve

290,505

353,989

Share of other comprehensive income of associates

-

(2,899)

Other comprehensive income for the period

924,764

163,242

Total comprehensive income for the period

29,515,181

21,961,040

Attributable to:

Equity shareholders of the Company

19,133,022

14,120,882

Non-controlling interests

10,382,159

7,840,158

Total comprehensive income for the period

29,515,181

21,961,040

18

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2019

At

At

30 September

31 December

2019

2018

RMB'000

RMB'000

(Unaudited)

(Audited)

Non-current assets

Property, plant and equipment

28,123,678

22,645,383

Intangible assets

813,688

1,015,426

Investment properties

93,669,117

25,897,948

Interest in associates and joint ventures

126,860,647

129,527,656

Other financial assets

3,144,819

2,688,915

Other non-current assets

6,384,228

35,982,967

Deferred tax assets

21,582,290

15,749,205

280,578,467

233,507,500

Current assets

Inventories and other contract costs

864,260,644

754,310,077

Contract assets

2,919,536

1,364,127

Trade and other receivables

376,804,275

331,838,827

Other current assets

2,386,432

12,600,806

Pledged and restricted deposits

11,178,453

12,749,283

Cash and cash equivalents

96,061,793

175,668,164

Assets held for sale

4,647,523

6,624,631

1,358,258,656

1,295,155,915

Current liabilities

Bank loans and borrowings

46,205,082

69,620,501

Bonds payable

14,277,525

24,918,488

Trade and other payables

506,955,197

485,370,555

Contract liabilities

587,345,960

504,711,414

Lease liabilities

2,347,982

-

Current taxation

45,167,518

37,292,979

1,202,299,264

1,121,913,937

Net current assets

155,959,392

173,241,978

Total assets less current liabilities

436,537,859

406,749,478

19

At

At

30 September

31 December

2019

2018

RMB'000

RMB'000

(Unaudited)

(Audited)

Non-current liabilities

Bank loans and borrowings from financial institutions

119,448,514

120,929,055

Lease liabilities

21,014,198

-

Bonds payable

48,351,104

47,095,146

Deferred tax liabilities

409,177

622,971

Provisions

153,189

143,528

Other non-current liabilities

2,309,782

2,338,048

191,685,964

171,128,748

NET ASSETS

244,851,895

235,620,730

CAPITAL AND RESERVES

Share capital

11,302,143

11,039,152

Reserves

155,971,684

144,724,980

Total equity attributable to equity shareholders of the Company

167,273,827

155,764,132

Non-controlling interests

77,578,068

79,856,598

TOTAL EQUITY

244,851,895

235,620,730

20

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

2019 Jan-Sep

2018 Jan-Sep

RMB'000

RMB'000

(Unaudited)

(Unaudited)

Operating activities

Cash generated from operations

32,312,773

3,572,282

Income tax paid

(30,578,362)

(29,303,457)

Net cash generated from/(used in) operating activities

1,734,411

(25,731,175)

Investing activities

Acquisitions of property, plant and equipment and investment properties

(3,461,193)

(8,385,685)

Other cash flows used in investing activities

(8,561,321)

(62,750,101)

Net cash used in investing activities

(12,022,514)

(71,135,786)

Financing activities

Dividends and interest paid

(28,292,417)

(23,881,601)

Other cash flows (used in)/arising from financing activities

(41,582,352)

79,077,576

Net cash (used in)/generated from financing activities

(69,874,769)

55,195,975

Effect of foreign exchange rate changes

556,501

461,377

Net decrease in cash and cash equivalents

(79,606,371)

(41,209,609)

Cash and cash equivalents at 1 January

175,668,164

164,326,007

Cash and cash equivalents at 30 September

96,061,793

123,116,398

21

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China Vanke Co. Ltd. published this content on 24 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2019 10:45:15 UTC