China Vanke Co., Ltd. (China Vanke) signed two connected-party financing documents with its 27.18% shareholder Shenzhen Metro Group on 12 May 2026:

1. Supplemental Agreement to the 2025 Loan Framework • Adds new collateral types—including third-party assets, partnership interests, receivables and project proceeds—and raises the initial loan-to-value (LTV) ceiling to 60%–100% for most physical assets and 50%–100% for equity and financial assets. • Maintains the original maximum principal cap of RMB22.00 billion. • Requires guarantees from subsidiaries or third parties at Shenzhen Metro Group’s discretion. • As of 31 March 2026, the full RMB22.00 billion facility had been utilised; interest accrued totalled RMB202.75 million in 2025 and RMB125.90 million in 1Q 2026.

2. 2026 Loan Framework Agreement • Provides up to RMB2.50 billion in additional shareholder loans available from 1 January 2026 to 31 December 2026. • Covers (i) RMB2.36 billion of unsecured credit already drawn in January 2026, which will be retroactively secured, and (ii) up to RMB0.14 billion of new drawdowns. • Interest rate: higher of 2.34% or one-year LPR minus 66 bps; interest payable quarterly. • Tenor: each definitive loan agreement up to three years; overall framework effective for three years from shareholder approval. • Credit enhancement: Asset collateral with LTV parameters identical to those in the supplemental agreement, plus potential guarantees. • Proposed annual caps combine principal and estimated interest: RMB2.56 billion (2026), RMB2.56 billion (2027), RMB2.56 billion (2028), and RMB2.51 billion through expiry.

Aggregate Exposure to Shenzhen Metro Group Loans Combining the amended 2025 framework, the new 2026 framework and four prior secured loans (RMB9.02 billion), China Vanke’s maximum potential related-party secured borrowings peak at RMB33.52 billion in each of 2026–2028. Corresponding annual interest exposure is estimated at RMB0.86 billion in 2026, RMB0.86 billion in 2027 and RMB0.46 billion in 2028.

Use of Proceeds Loan proceeds are earmarked to repay on-market debt. Between January and April 2026, RMB2.36 billion of the new facility was applied to settle portions of medium-term notes and corporate bonds maturing in 2026–2027. A further RMB4.73 billion in bond payments falls due from May to June 2026, for which the company may allocate remaining capacity.

Corporate Governance & Approval Process • The transactions qualify as continuing connected transactions under HKEX Chapter 14A; at least one percentage ratio exceeds 5%. • Independent Board Committee and Octal Capital Limited have been engaged to advise non-connected shareholders. • Shenzhen Metro Group will abstain from voting at the forthcoming general meeting; the circular is scheduled for dispatch by 14 May 2026.

Rationale Management cites improved financing flexibility, higher collateral efficiency and lower borrowing costs relative to bank loans (average 3.02% in late 2025). Internal controls include monthly LTV monitoring, independent asset valuations and annual audits.