On January 30, China Vanke Co.,Ltd. released its performance forecast for the 2025 fiscal year. Confronting multiple formidable challenges over the past year, and with the staunch support of its major shareholder and other stakeholders, Vanke dedicated its full efforts to overcoming difficulties, achieving a notably hard-won stability in its production and operations. In 2025, Vanke delivered 117,000 homes while ensuring quality, maintained steady revenue from its business services segment, actively promoted cost reduction and efficiency enhancement in its development business, and achieved a consecutive two-year decline in administrative expenses for the development segment. It is understood that Vanke has completed approximately 70% of its delivery commitments for the past two years in 2025 alone; having passed the peak delivery period, the pressure for subsequent deliveries is expected to decrease significantly.
Despite substantial support from various parties and the company's all-out efforts, Vanke's operating performance remains under intense pressure due to multiple factors, with a considerable burden from historical issues. Regarding the reasons for the net loss in 2025, Vanke stated in its announcement that, firstly, the scale of revenue recognition from real estate development projects decreased significantly, and gross profit margins remained low. The settlement profits from the real estate development business in 2025 primarily corresponded to projects sold in 2023 and 2024, as well as the clearance of completed and near-completed housing inventory in 2025; these projects had relatively high land acquisition costs, leading to a substantial reduction in the total gross profit settled during the reporting period. Secondly, due to increased business risk exposure, additional provisions for credit impairments and asset impairments were recognized. Thirdly, some operating businesses reported an overall loss after depreciation and amortization, coupled with losses from certain non-core financial investments. Fourthly, the transaction prices for some bulk asset and equity disposals were lower than their carrying values.
In 2025, the major shareholder, Shenzhen Metro Group, provided multifaceted support to the best of its ability to help Vanke maintain stability in its production and operations. According to public information, Shenzhen Metro has cumulatively provided over 30 billion yuan in shareholder loans to Vanke, with terms more favorable than market rates, offering substantial financial assistance to alleviate Vanke's liquidity pressures. Beyond liquidity support, the major shareholder also enhanced business collaboration with Vanke; Shenzhen Metro Properties Group signed a framework leasing and operation agreement with Vanke's co-living apartment brand, PoYu, for Shenzhen Metro projects, further deepening cooperation in the housing rental sector. Shenzhen Metro and Vanke also jointly launched the world's first pilot project featuring "robots autonomously taking the subway for merchant deliveries," which began gradual batch deployment and operation in the fourth quarter of 2025.
Vanke itself has also risen to the challenge, making every effort to sustain company operations. In terms of housing delivery, supported by the ongoing implementation of the government's "policy toolkit" for ensuring housing delivery and assistance from various parties, Vanke overcame numerous challenges to fulfill its delivery commitments for 2025. Over the past year, Vanke employed multiple measures to advance delivery efforts, strengthened full-cycle quality management in construction, enhanced the precision of project process management, initiated the "City Prosperity Delivery" campaign to build a replicable and scalable standardized tool system, applied smart technologies like 360-degree cameras and drone site inspections to project sites for "cloud supervision" by homeowners, invited customers for offline site visits to observe construction progress, actively promoted "property title registration upon delivery" services for customer convenience, and reinforced community operations and amenities to create a warm community ecosystem. Through these concrete actions, Vanke delivered 117,000 homes on schedule and with guaranteed quality throughout the year, including 16,000 units delivered 30 days ahead of schedule and approximately 5,000 units delivered ahead of schedule across the year-end; projects in cities like Jinan, Zhengzhou, and Nanchang achieved a 100% home acceptance rate upon delivery.
As an early mover in the industry's transition, Vanke's business services segment demonstrated resilient revenue performance. As of the third quarter of 2025, the business services segment generated revenue of 435.7 billion yuan, remaining stable year-on-year; its co-living business maintained its leading industry position in scale, efficiency, and the number of units included in affordable housing programs, with managed units surpassing 200,000 and an occupancy rate stabilizing at 94%. In the property services business, the company managed over 4,400 residential property projects and more than 2,500 commercial and enterprise service projects in the first half of the year, leading the industry in both scale and comprehensive service capabilities. The logistics business boasted leasable warehouse space exceeding 10 million square meters in the first three quarters, placing it in the industry's top tier for scale, while its cold chain business ranked first in the industry; the occupancy rate for stabilized high-standard warehouses stood at 86%, maintaining a relatively high industry level. The commercial business saw steady growth in customer traffic and sales, with an overall occupancy rate of 92%.
Vanke stated that it will exert its utmost efforts to drive operational improvements. Through strategic focus, standardized operations, and technological empowerment, the company aims to optimize its business portfolio and structural adjustments, enhance its capabilities in multi-scenario development and operation, unite its entire workforce to methodically resolve risks, extricate itself from difficulties, and propel the company toward an early recovery from its current trough.
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