China Vanke Co. has said it will give more weight to real estate management and services, as the country’s largest property developers tweak their business models to bolster profitability amid tighter government restrictions on borrowing, reported Caixin.
The move heralds a shift away from the Hong Kong- and Shenzhen-listed firm’s focus on real estate development and toward a multi-pronged approach that balances other sides of its business, executives said at Vanke’s annual general meeting on Tuesday.
“It’s getting harder to make money from the development business,” said Vanke’s president and CEO Zhu Jiusheng at the shareholders’ meeting. But the company’s property management and services businesses needed to make breakthroughs in concepts, technology and implementation methods, he said.