China Vanke Updates RMB22 Billion Shareholder Loan Terms and Seeks Approval for New RMB2.50 Billion Framework with Shenzhen Metro

Bulletin Express05-14

China Vanke has issued a supplemental circular detailing two continuing connected transactions with its 27.18 % shareholder, Shenzhen Metro Group:

• Supplemental agreement to the 2025 shareholder-loan framework – Keeps the original RMB22.00 billion ceiling but broadens acceptable collateral to include partnership interests, receivables, notes and other rights. – Raises initial loan-to-value ratios to 60 – 100 % for physical assets (properties, inventories, fixed assets) and 50 – 100 % for equity interests and financial assets. – Shenzhen Metro may also request third-party guarantees designated by China Vanke.

• New 2026 shareholder-loan framework – Provides a one-time credit line of up to RMB2.50 billion for drawdowns between 1 January and 31 December 2026. – Interest will be the higher of 2.34 % or one-year LPR minus 66 basis points, with a maximum three-year tenor per drawdown. – Annual caps cover the full principal plus estimated interest of RMB57.70 million, RMB64.40 million, RMB64.40 million and RMB7.70 million for the periods up to 2029. – The facility will be secured by the same expanded range of assets and LTV ratios as the amended 2025 agreement. – Approximately RMB2.36 billion has already been drawn under a January 2026 designated agreement; about RMB0.14 billion remains available for new drawdowns.

Purpose Vanke will apply the proceeds to repay on-market bonds and related interest, including tranches maturing in the first half of 2026 totalling about RMB8.52 billion.

Shareholder approval Independent shareholders will vote on both agreements at the annual general meeting scheduled for 29 May 2026 in Shenzhen. Shenzhen Metro and its associates will abstain from voting.

Independent opinions An independent board committee and Octal Capital Limited, acting as independent financial adviser, consider the terms fair, reasonable and in the interests of minority shareholders.

Completion of the agreements is conditional on approval at the AGM; all other terms of the original 2025 framework remain unchanged.

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