Vanke Files Prospectus for Its Integrated Community-Institution-Home Elder Care Ecosystem

VCBeat News – Recently, Vanke Hangzhou announced its entry into the elderly care industry, revealing Vanke’s new strategic shift toward becoming an urban service provider. VCBeat has learned that Vanke’s elderly care business has established a closed-loop ecosystem encompassing three major product lines: community-based, institutional, and home-based care, covering eight service modules and a total of 165 detailed service items.

Zhang Hai, Senior Vice President of Vanke Group, pointed out that among the three major business segments, embedded elderly care holds significant social value, primarily due to Vanke’s current product lines: Suiyuan Jiashu (active senior living apartments) and Suiyuan Zhijia (community-based home care service centers). Suiyuan Zhijia is the first community-based home care project launched by Vanke Hangzhou in partnership with the government. From its first facility opened in February 2016 to the current 100th, it has undertaken more than half of the government’s outsourced operations for home care service centers.

Vanke Suiyuan Elderly Care is gradually establishing China’s first elderly care industry ecosystem, with the Yangtze River Delta as its base. According to analysis and forecasts by relevant experts, at Vanke Suiyuan Elderly Care’s current pace of development, its network may expand to over 1,000 facilities within the next three years, directly serving more than 50,000 seniors and reaching a total of 600,000 seniors through its services.

As a growth-oriented business within the group, Vanke’s elderly care sector is not currently focused on profitability. A representative responsible for Vanke’s Suiyuan elderly care services revealed that Suiyuan Jiashu has already achieved operational profitability, with a 100% collection rate for service fees. To date, Vanke’s elderly care division has not considered engaging with capital markets. “Many institutions related to real estate finance market future occupancy rights as a product. We are not currently treating this as a key business priority.”