Vanke Q1 2026 Revenue Drops 23.9% to 28.93 Billion, Net Loss Narrows to 5.95 Billion

Bulletin Express04-29

China Vanke Co., Ltd. (“Vanke”) released its unaudited results for the three months ended 31 March 2026.

Revenue totaled 28.93 billion, a year-on-year decline of 23.86%. The contraction was driven mainly by the property development segment, whose revenue fell 36.10% to 14.57 billion. Operating and property services generated 12.48 billion, edging up 1.70%.

The Group recorded a net loss attributable to equity shareholders of 5.95 billion, an improvement of 4.71% from the 6.25 billion loss a year earlier. The overall gross profit margin reached 9.1%, up 3.0 percentage points year-on-year.

Operating cash outflow narrowed sharply: net cash used in operating activities was 2.16 billion versus 5.79 billion in the prior-year period. Cash and cash equivalents stood at 55.16 billion at quarter-end, while total interest-bearing liabilities were 356.05 billion, translating into an asset-liability ratio of 77.1%.

Balance-sheet metrics showed total assets of 997.41 billion, down 2.27% from end-2025, and equity attributable to shareholders of 110.54 billion, down 5.45%. The weighted average return on net assets was –5.23%, versus –3.13% a year earlier.

Segment and business highlights • Contracted sales reached 16.77 billion on 1.40 million sq m, down 53.8% and 42.2% respectively. • Rental housing contributed 724 million in revenue, with an occupancy rate of 93.7% across 251,000 units under management. • Retail property operations (SCPG) delivered 2.08 billion in revenue, up 7.30%, and maintained a 93.1% occupancy rate. • Logistics and warehousing services generated 1.09 billion, rising 9.80%; cold-chain revenue grew 28.0% to 640 million. • Onewo, the property-service arm, continued to roll out its “Lingshi” AI platform and secured new hospital and commercial mandates.

Capital and financing developments • Average cost of existing financing declined to 2.88%, with onshore funding at 2.62%. • Majority shareholder Shenzhen Metro Group (SZMC) extended 2.73 billion in additional shareholder loans during the period at a 2.34% cost and agreed to defer repayment of 274 million due in Q1. • Bondholders approved maturity extensions for three medium-term notes and one corporate bond.

Asset optimisation Vanke completed several asset sales, including the Guangzhou Yuncheng parking-lot portfolio for 87 million, and acquired new land in Qingdao via a joint venture, converting commercial land to residential use for future development.

Shareholder structure As of 31 March 2026 the company had 489,869 ordinary shareholders. SZMC remained the largest holder with a 27.18% stake, followed by HKSCC Nominees at 18.49%. Total share capital was unchanged at 11.93 billion shares (9.72 billion A-shares and 2.21 billion H-shares).

Looking ahead, management highlighted continued policy support for China’s real estate sector, ongoing cost-control measures, and further portfolio optimisation to stabilise cash flow and balance-sheet health.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment