Vanke's debt repayment is progressing in an orderly manner, a breakthrough is again made in the real estate fund field.

With full effort and rapid action, Vanke has made several positive developments again. On February 18th, Vanke disclosed on the Market Trading Members Association of Bank Of China website that it will redeem the "22 Vanke MTN003" medium-term notes as scheduled, making it the third public bond redemption by Vanke this year. At the same time, Vanke announced the establishment of the "Vanke New Golden Stone" Pre-REIT Fund in collaboration with Zhongxin Jinshi, New China Life Insurance, and Dajia Insurance to invest in Vanke's Xiamen Boyue ApartmentHaiwan Community project. An analyst in the capital market pointed out that before the Spring Festival, various parties expressed support for Vanke, with major shareholders actively participating to help Vanke's healthy development. Less than two weeks after the holiday, Vanke has achieved several positive developments, first receiving loans from major shareholders, then redeeming the third public bond on schedule, and making progress in the Pre-REIT Fund, demonstrating Vanke's proactive actions and strong support from all sides. With its own efforts and support from all parties, it is believed that as the real estate market stabilizes, Vanke will also be able to return to the path of healthy development. Vanke's bond redemption work for the maturing bonds this year is progressing orderly. According to the disclosure on the Market Trading Members Association of Bank Of China website, Vanke will redeem the "22 Vanke MTN003" bond due on February 25th as scheduled. This bond was issued on February 28, 2022, with an issuance amount of 2 billion yuan, a coupon rate of 3.0%, and a term of 3 years. Previously, there were frequent good news regarding Vanke's bond redemption. The domestic medium-term notes "22 Vanke MTN001", due on January 27, and "22 Vanke MTN002", due on February 16, were both fully redeemed with principal and interest as scheduled. Vanke also announced in January the full redemption of the "20 Vanke 02" corporate bonds. Vanke had previously stated that it would make every effort to deal with the maturing public debts in 2025 through actively selling assets, promoting bulk transactions, accelerating the exit of non-core businesses, and continuously seeking financing resources. From recent actions, it is evident that Vanke is actively and orderly advancing its bond redemption work. While adhering to safety, Vanke has made further progress in the real estate fund field. According to the announcement, the Pre-REIT Fund jointly established by Vanke, Zhongxin Jinshi, New China Life Insurance, and Dajia Insurance has a total size of 1.6 billion yuan, with New China Life Insurance subscribing for 59.94%, Dajia Insurance for 30%, Zhongxin Jinshi for 0.06%, and Vanke Group for 10%. The investment by the fund is in Xiamen Boyue ApartmentHaiwan Community located on Xiamen Island, with a planned total of 7,724 rental units, making it the largest guaranteed rental housing project in Fujian. The project achieved 100% occupancy rate in its first year of operation, and after the completion and operation of the second phase, it will become the largest concentrated long-term rental apartment project of Bo Yu nationwide, providing accommodation for about ten thousand young people. After the completion of this transaction, it is expected to provide positive cash flow and profits for Vanke. Additionally, Vanke will continue to be responsible for the long-term operation of the store, transitioning from heavy asset holdings to light asset operations. Vanke stated that the establishment of the Vanke New Jinshi Pre-REIT Fund will help the company further build a multi-format, multi-level, and multi-channel real estate exit path, connect the commercial model loop of operating assets, revitalize existing assets and cash flow, and better achieve the benign development of assets. The investment by top insurance companies such as New China Life Insurance and Dajia in the Vanke Pre-REIT Fund not only reflects the market's high recognition of Vanke's asset quality and operational capabilities but also indicates that confidence in Vanke is gradually returning. In the past, Vanke's cooperation with insurance institutions mainly took the form of real estate equity plans using insurance funds. The establishment of the Pre-REIT Fund marks Vanke's further opening up of the path for cooperation with various insurance funds for real estate equity investment, which will help Vanke further realize the virtuous cycle of operational real estate. It is worth noting that Vanke has achieved breakthroughs in multiple tracks of REITs and Pre-REITs, becoming one of the few companies in the industry to achieve breakthroughs in multiple areas of real estate funds and gradually establish asset securitization capabilities in line with the industry's future development model. Last year, the successful issuance of the Zhongjin Yinli REIT, as one of the first batch of domestic consumer infrastructure public REITs, has been stable in operations and market performance and is currently undergoing the second phase of asset expansion. The Zhongxin Consumer Infrastructure Pre-REIT Fund, established by Vanke with Taikang Insurance, China Post Insurance, and Zhongxin, has already made investments in the first batch of two large-scale shopping centers and will continue to expand new assets. The billion-dollar scale Jianwan Housing Renting Pre-REIT Fund, jointly established by Vanke and Construction Bank, has already made investments in five projects and continues to expand projects. Vanke's Boyue REIT is also actively promoting the issuance based on the feedback from the National Development and Reform Commission in the first half of 2024.