Vanke Posts Nearly 50 Billion Yuan in First Annual Loss in 34 Years, Financial Pressure Intensifies

China’s former growth engine, the real estate market, continues to be sluggish. The state-owned real estate giant, Vanke, has been listed for 34 years and has suffered a loss of nearly 50 billion yuan for the first time, with future financial pressures set to intensify.

On the evening of March 31st, Vanke released its 2024 annual financial report. The financial report revealed that in 2024, Vanke achieved operating income of 343.176 billion yuan, a decrease of 26.32% compared to the previous year. The net profit attributable to the parent company plummeted from a profit of 12.163 billion yuan in the previous year to a significant loss of 49.478 billion yuan, a decrease of 506.79%.

This is the first annual loss for Vanke since its IPO in 1991 and currently the largest loss disclosed by a listed company for the year 2024 on the A-share market.

Vanke attributes the loss to a reduction in completed and settled projects, a decrease in development business gross profit margin, financial losses, and other factors.

The company stated that in 2025, the group will face concentrated repayment of public debts, further increasing liquidity pressure. With the support from various parties, the company is actively engaging in self-rescue efforts, although the risks have not been completely resolved.

According to Wind data, Vanke currently has 32 outstanding domestic and foreign bonds totaling over 50 billion yuan. Among these, there are 16 domestic and foreign bonds due for repayment or conversion in 2025, with a total value of 30.15 billion yuan.

In a report on February 6th by Caixin, on the afternoon of the 5th, Vanke announced an internal notice appointing 10 new executive management personnel. The public notice period was from February 5th to February 7th. Prior to the Chinese New Year (January 27th), Xin Ji, the chairman of Shenzhen Metro Group, was appointed as the chairman and legal representative of Vanke. Since then, Vanke’s management model has shifted from “led by professional managers” to “deep management by state-owned assets”.

On the evening of February 21st, Vanke announced that Shenzhen Metro plans to provide a loan of 4.2 billion yuan to Vanke for repaying upcoming debts. Since last year, Shenzhen Metro Group has been supporting Vanke and has already spent about 11.5 billion yuan, but has not yet recovered its investment costs from Vanke.