On April 29th, Chinese real estate giant Vanke Group released its financial report for the first quarter of 2026, reporting a net loss of 5.95 billion yuan, a nearly 24% year-on-year decline in operating income, and a more than 50% plunge in contract sales amount. Despite some improvement in cash flow, the company is facing a challenging situation with 356 billion yuan in interest-bearing debt and continued poor sales performance, leaving the once-leading real estate company deep in crisis and facing a long road to debt restructuring.
According to the announcement by Vanke, the company achieved operating income of 28.93 billion yuan in the first quarter of 2026, a decrease of 23.9% year-on-year. The net loss attributable to shareholders of the listed company was 5.95 billion yuan, slightly narrower than the 6.25 billion yuan loss in the same period last year. At the same time, the operating income contributed by the real estate development business in the first quarter was 14.57 billion yuan, down by 36.1%.
On the sales side, Vanke sold a total area of 1.41 million square meters in contracts in the first quarter, with a contract sales amount of 16.77 billion yuan, representing decreases of 42.2% and 53.8% respectively compared to the same period last year.
As of the end of the reporting period, Vanke’s interest-bearing debt totaled 356.05 billion yuan, with an asset-liability ratio of 77.1%. By the end of 2025, Vanke held cash and cash equivalents of 67.24 billion yuan, while short-term borrowings and non-current liabilities due within one year totaled 162.98 billion yuan, resulting in a funding gap of over a trillion yuan.
Vanke’s disclosed data shows that in 2026, the company faces a total of 14.68 billion yuan in publicly issued bonds maturing, with 112.7 billion yuan concentrated between April and July.
As of the closing price on April 1st, Vanke’s stock was priced at 4.04 yuan per share, with a total market value of 48.2 billion yuan, representing a 90% drop compared to its peak market value of over 450 billion yuan.
Earlier this month, Vanke released a “Summary of the 2025 Annual Report”, which indicated that in 2025, Vanke achieved operating income of 233.43 billion yuan, with a net loss of 88.56 billion yuan attributable to shareholders of the listed company, marking the largest loss in the company’s history since going public. Vanke has accumulated over 138 billion yuan in losses over the past two years.
While Vanke continues to face major operational challenges, its management team is also in turmoil. According to financial news from Sina on March 30th, an insider from Southwest Vanke revealed that Wu Zhongyou, former General Manager of Guizhou Vanke, was taken in for investigation, along with Wang Runchuan, former General Manager of Yunnan Vanke and former secretary to the board chairman of Vanke. Rumors of investigation also surrounded former Vanke Group Chairman Yu Liang, former Vanke Group Chairman Xin Jie, and former Vanke Group President and CEO Zhu Jiusheng, who was subject to criminal coercive measures in October 2025. Incomplete statistics show that more than 25 key executives at Vanke have either resigned or been taken in for investigation.