China News Service, Beijing, March 31 (Reporter Pang Wuji) Yu Liang, chairman of Vanke's board of directors, publicly apologized to shareholders for the sharp decline in net profit on March 31.

　　On the evening of the 30th, Vanke's 2021 annual report revealed that last year, Vanke achieved operating income of 452.8 billion yuan (RMB, the same below), a year-on-year increase of 8.0%; net profit attributable to shareholders of listed companies was 22.52 billion yuan, a year-on-year decrease of 45.7%.

This is the third time that Vanke's net profit has declined in the 31 years since its listing.

The previous two were in 1995 and 2008.

　　In the "Letter to Shareholders", Yu Liang published a 4,000-word testimonial and reviewed the decline in net profit.

Yu Liang said that the decline in Vanke's net profit was mainly due to a decline in gross profit margin, a decrease in investment income, and provision for impairment caused by a downturn in the market.

Among them, the decline in gross profit margin is the main factor affecting the financial level. In 2021, the company's overall gross profit margin is 21.8%, a year-on-year decrease of 7.4 percentage points.

　　In addition to financial analysis, he pointed out that from a structural point of view, the real estate development business still plays a decisive role in Vanke's net profit.

Last year, due to changes in the external environment and the company's own factors, the gross profit of the development business decreased by 18.9 billion yuan year-on-year.

　　He explained that in recent years, the competition in the land market has been fierce, which has had a significant impact on the gross profit margin level of the industry. Although the company realized early in the industry that the rapid growth will eventually come to an end, "it's a shame that our behavior has not been able to get rid of it resolutely," he explained. high growth inertia".

When the chasing scale is still popular and the land competition is intensifying, some cities are chasing high and aggressive investments, and they are too optimistic about the market. The investment expectations of some projects have not been realized, resulting in a decline in gross profit margins.

At the same time, the capabilities of companies in different cities are uneven, and some companies and projects with weak performance have affected the overall performance.

　　In addition to reflecting on the fully authorized and distributed management method, Yu Liang said on the same day that the simultaneous exploration of multiple tracks cost Vanke more than expected, and it also had an impact on past performance.

In addition, in the process of building a new track, trial and error also brings a certain cost.

　　Regarding this year's plan, Yu Liang revealed that this year, Vanke is confident to complete the task of stabilizing and improving.

In terms of management, he revealed that last year, the level of group partners was abolished, that is, group executives in the usual sense, and everyone had to go to the front line to work, "I and the president are no exception."

　　According to the annual report, in 2021, the total pre-tax remuneration of the eight directors, supervisors and executives of Vanke will be 34.096 million yuan, a year-on-year decrease of 50%.

Among them, Yu Liang, chairman of the board of directors, voluntarily gave up all bonuses.

Yu Liang's actual cash compensation in 2021 will drop by nearly 90%.

　　Affected by the tightening of control and other factors, the performance of most real estate companies in China declined significantly last year.

According to the previous statistics of the China Index Research Institute, among the 64 A-share real estate companies, 27 companies reported losses, accounting for 42.2%.

The performance of many leading real estate companies is under pressure.

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