Vanke 2025 Annual Results: RMB88.56 Billion Net Loss as Revenue Falls 31.98%

China Vanke Co., Ltd. released its audited results for the year ended 31 December 2025, reporting a sharp deterioration in operating performance.

Revenue and Profitability • Revenue dropped 31.98% year-on-year to RMB233.43 billion, primarily due to lower settlement volume in the development segment and reduced margins. • Gross profit fell 95.48% to RMB1.26 billion; gross margin before taxes and surcharges for the development and related asset-operation business turned negative at –2.28%. • Net loss attributable to shareholders reached RMB88.56 billion, versus a profit of RMB12.16 billion in 2023 and a loss of RMB49.48 billion in 2024. Basic loss per share was RMB7.45.

Key Drivers of the Loss Management attributed the steep decline to: 1) significant contraction in property settlement scale and low gross margins; 2) additional inventory and credit impairment provisions of RMB20.83 billion and RMB33.65 billion, respectively; 3) operating losses in certain non-core businesses; and 4) disposal prices of some bulk assets and equity interests falling below book value.

Cash Flow and Debt Position • Net cash outflow from operating activities was RMB0.99 billion, versus an inflow of RMB3.80 billion in 2024. • Cash and cash equivalents stood at RMB61.52 billion, while interest-bearing liabilities totaled RMB358.48 billion; net debt ratio rose to 123.48% (2024: 80.60%). • Vanke extended three listed bonds in early 2026 after securing bondholder approval and received cumulative shareholder loans of RMB33.52 billion from major shareholder Shenzhen Metro Group Co., Ltd. (SZMC).

Asset Impairments and Write-downs • Inventory write-downs: RMB20.83 billion. • Credit impairment losses: RMB34.17 billion. • Impairment on investment properties: RMB1.17 billion. • Impairment on property, plant and equipment: RMB0.16 billion.

Segment Performance • Development and related asset-operation revenue: RMB190.65 billion (–36.67%). • Property-services revenue (Onewo): RMB35.52 billion (+7.22%); gross margin slipped to 12.35%. • Regional revenue share: Shanghai Region 35.29%, Southern Region 21.00%, Beijing Region 13.77%, others below 15%.

Dividend The Board proposed no cash dividend, bonus share issue, or capitalisation of reserves for 2025 due to the operating loss and accumulated parent-company loss position.

Going-Concern Uncertainty Auditor Deloitte Touche Tohmatsu issued an unqualified opinion with a material uncertainty related to going concern, citing the Group’s large short-term debt (RMB160.56 billion due within one year) against limited cash reserves.

Management Outlook Vanke plans to prioritise risk mitigation, asset revitalisation, cost control and policy-supported financing in 2026, while focusing on “good housing, good communities and good services” to stabilise operations and restore development resilience.