Vanke Group Co., Ltd. (Vanke) incurred a loss of 88.56 billion yuan in 2025, the largest deficit since its listing. With interest-bearing debt of 160.56 billion yuan due within a year and only 67.24 billion yuan in currency funds held by the company, the debt repayment pressure is enormous. In the face of this dilemma, Vanke’s management seems to lack a viable solution.
On April 1, Vanke released a summary of its 2025 annual report. The announcement stated, “In 2025, the group achieved operating income of 233.43 billion yuan, with a net loss attributable to shareholders of the listed company of 88.56 billion yuan, a year-on-year decrease of 32.0% and 79.0% respectively; basic loss per share was 7.45 yuan, a 78.4% decrease compared to the previous year.” The loss of 88.56 billion yuan marks Vanke’s most dismal performance since its listing.
Vanke has now suffered losses for two consecutive years. In 2024, the company incurred a net loss attributable to shareholders of 49.48 billion yuan, which escalated to 88.56 billion yuan in 2025. Over the span of two years, Vanke’s cumulative losses amount to 138 billion yuan, setting a new record for real estate companies listed on the A-share market.
The company’s financial figures detailed in the announcement reveal that net profit attributable to shareholders of the listed company dropped by 89.27% post-adjustment for non-recurring items. Net cash flow from operating activities plummeted by 126.00%, total assets shrunk by 20.65% to 1.02 trillion yuan, and net assets drastically decreased by 42.32% to 116.9 billion yuan. The asset-liability ratio surged to 76.89%, and the net debt ratio soared from 80.6% to 123.48%.
During an investor relations meeting held on the 31st, Vanke’s management admitted that, influenced by multiple internal and external factors, the company’s current operating situation remains extremely severe, particularly the repayment pressure in 2026.
The announcement indicates that as of the end of 2025, Vanke held 67.24 billion yuan in currency funds while facing a cash shortfall of over 100 billion yuan due to short-term borrowings and non-current liabilities maturing within a year, severely lacking short-term debt repayment capability.
While facing significant operational challenges, Vanke’s management team is also undergoing turmoil. According to a March 30 report by Sina Finance, internal sources from Southwest Vanke revealed the investigation of Wu Zhongyou, former General Manager of Guiyang Vanke, and Wang Runchuan, former General Manager of Yunnan Vanke. Coupled with rumors of former Board Chairman Yu Liang’s investigation, ex-Vanke Group Chairman Xin Jie’s involvement in an investigation, and former President and CEO Zhu Jiusheng being subject to criminal measures in October 2025, incomplete statistics show that over 25 key executives at Vanke have resigned or are under investigation.
Regarding the development in 2026 and beyond, Vanke stated in the announcement that it will “focus on risk management and development as the two main themes,” aiming to strategically exit cities and businesses with poor prospects and enhance product and service capabilities as four key focal points.
However, financial analysts believe that despite Vanke’s ambitious slogans, the company has not provided concrete strategies for tackling soaring debt and turning losses into profits to benefit shareholders.
As of the closing on April 1, Vanke’s stock price was at 4.04 yuan per share, with a total market value of only 48.2 billion yuan, a staggering 90% decline from its peak market value exceeding 450 billion yuan.
Financial analysts assert that Vanke’s plummeting stock price reflects the capital market’s deep pessimism towards the company’s future profitability expectations, asset quality, and liquidity risks, with market confidence hitting rock bottom.