Chinese real estate continues to struggle, with industry giant Vanke suffering a huge loss of nearly 88.6 billion yuan last year. The latest news reveals that Vanke’s largest shareholder, Shenzhen Metro Group, has provided another 2.5 billion yuan in funding to Vanke, on top of the 22 billion yuan previously loaned. It is noteworthy that Shenzhen Metro Group reported a net loss of 37.197 billion last year.
On the evening of May 12, Vanke Corporation announced that it had signed a framework agreement with its largest shareholder, Shenzhen Metro Group, granting the company a borrowing limit of up to 25 billion yuan from January 1, 2026, to December 31, 2026. As of now, the actual amount borrowed under this limit is 23.59 billion yuan.
According to the announcement, the initial term of each loan shall not exceed 3 years, and with the consent of Shenzhen Metro Group, the loan term can be extended. The borrowed funds will mainly be used to repay Vanke’s publicly issued bond principal and interest as well as designated loan interest agreed upon by Shenzhen Metro Group.
As of now, Shenzhen Metro Group holds a 27.18% stake in Vanke, making it the company’s largest shareholder. Shenzhen Metro Group is a state-owned enterprise directly managed by the Shenzhen State-owned Assets Supervision and Administration Commission, responsible for more than 90% of urban rail transit construction and operation in Shenzhen.
On the evening of the 12th, Vanke also announced that since 2025 until the convening of the company’s shareholders’ meeting in 2025, Shenzhen Metro Group had provided Vanke with a borrowing limit of up to 22 billion yuan. The company will provide guarantee for the actual borrowing occurred under the borrowing limit.
Vanke’s disclosure data shows that in 2026, the company faces a total of 14.68 billion yuan in maturing public bonds, with a significant portion of 112.7 billion yuan coming due from April to July.
It is worth noting that in 2025, Shenzhen Metro Group reported an operating income of 21.22 billion yuan and a net loss of 37.197 billion yuan. In the same year, Vanke’s operating income was 233.43 billion yuan, down by 32.0% year-on-year, with a net loss of 88.56 billion yuan, nearly an 80% increase from the previous year, marking the largest loss since its listing.
Last year, Vanke’s contracted sales amounted to 134.06 billion yuan, a 45.5% decrease year-on-year. The main real estate development business revenue decreased by 36.7% to 190.65 billion yuan, accounting for 81.7% of the company’s total revenue and being the main cause of the revenue decline.
In the first quarter of this year, Vanke’s revenue was 28.928 billion yuan, a 23.86% decrease year-on-year. The net loss attributable to shareholders was 5.952 billion yuan, slightly narrower than the 6.246 billion yuan in the same period last year. The real estate development business continued to be under pressure, with revenue of 14.57 billion yuan, a 36.1% decrease, and contracted sales of 16.77 billion yuan, down by 53.8%.
According to Jiemian News, Vanke is raising funds by selling its assets.
On the evening of April 29, Vanke announced that its indirect wholly-owned subsidiaries, Zhuhai Qinshan Jiaye Agriculture Development Co., Ltd. and Weihai Heda Information Consulting Partnership Enterprise (Limited Partnership), plan to transfer approximately 99.4130% of their shares in Huan Shan Group Co., Ltd. through open listing on the Shenzhen United Property Exchange, with a corresponding amount of 3.27 billion yuan.
In addition, in the first quarter, Vanke also completed several asset transactions, including the disposal of assets related to Guangzhou Yuncheng Parking Lot for 87 million yuan.