China Vanke reports increased losses amid market adjustments

China Vanke Co., Ltd. reported a net loss attributable to equity shareholders of 11.95 bn yuan for the first half of 2025, a 21.25% increase from the prior year. Revenue for the period decreased by 26.23% year-on-year to 105.32 bn yuan, with gross profit falling 44.27% to 5.38 bn yuan. The company attributes its loss-making performance primarily to declining settlements in real estate development projects, low gross profit margins, and increased provisions for asset impairment.

The Group’s real estate development and related asset operation businesses generated 84.44 bn yuan in revenue, accounting for 80.2% of the total. Property services contributed 17.09 bn yuan, representing 16.2% and a 0.6% year-on-year increase. As of June 30, 2025, the company's net gearing ratio rose to 90.4%, an increase of 9.8 percentage points from the end of 2024, with total interest-bearing liabilities reaching 364.26 bn yuan.

Despite these challenges, Vanke continues to focus on business improvement, asset revitalization, and leveraging technological innovation. The company secured 24.9 bn yuan in new financing and refinancing, and its largest shareholder, SZMC, provided 23.88 bn yuan in cumulative shareholder loans during the period. Onewo, the property services subsidiary, saw its revenue increase by 3.1% year-on-year to 18.168 bn yuan.