China Vanke Co. Ltd. which is emerging from a corporate ownership battle that started in late 2015, will focus on expanding different business lines in 2017, its management said in a March 27 earnings call.
Vanke's president Liang Yu said the property giant will "create more strategic synergies" with government-backed Shenzhen Metro Group, which took over China Resources and China Evergrande Group's entire holdings in the company to become its largest shareholder.
"For more than a decade, China Resources thoroughly played the role of Vanke's cornerstone shareholder. ... Its support in the past enabled Vanke to grow exponentially in China real estate market's golden age," said Yu. "With Shenzhen Metro becoming our important cornerstone shareholder, the business will continue to broaden through the 'railway + property' development model."
Vanke aims to become an industry leader in developing property projects above metro stations and will actively search for such opportunities in Shenzhen and other Chinese cities, company secretary Xu Zhu said in the call.
In the logistics property sector, Vanke will focus on high-end warehouse projects in key cities across the country, according to Zhu. The developer added 10 more projects in 2016, bringing on new leasable area amounting to 960,000 square meters.
Vanke also plans to expand its portfolio of skiing resorts in Beijing and nearby cities, ahead of the 2022 Winter Olympics. As of 2016-end, Vanke managed three projects: Jilin Vanke Songhua Lake, Qiaoshan Beidahu and Beijing Shi Jinglong. It now manages the largest area of ski runs and has the most number of ropeways in China, according to the company.
Meanwhile, the developer will continue to expand the number of commercial properties it owns through the new SCPG Holdings Co. Ltd. platform and grow its aged-care facilities under the Boyu brand.
"Our long-term goal is to grow our other business lines as significantly as our traditional property development line," said Yu.
On the property development front, Vanke aims to commence on new projects totaling 29.2 million square meters in 2017, a 32.9% increase year over year, and plans to complete projects totaling 24.5 million square meters, marking a 9.5% increase.