In recent years, the Chinese real estate market has been experiencing a continuous downturn. Leading real estate company Vanke is once again under pressure as its performance has been struggling. In the first half of this year, the company’s revenue decreased by 33.38% compared to the same period last year, with a net loss of nearly 15 billion yuan (RMB), an increase of 25% from the previous year. The company stated that the operating situation is extremely severe, with daunting risk management tasks.
On the evening of August 27th, Vanke released its semi-annual report for the year 2026. The financial report indicated that Vanke’s operating income for the first half of the year was 70.169 billion yuan, a decrease of 33.38% compared to the previous year.
While there was a significant drop in revenue, the company’s profitability continues to be under pressure. The net loss attributable to shareholders of the listed company reached 14.951 billion yuan in the first half of the year, an increase of 3.004 billion yuan from the same period last year, with a widening loss margin of 25.15%.
Vanke’s sales performance was similarly weak, with a sales area of 2.93 million square meters and a sales amount of 35.8 billion yuan in the first half of the year, representing a decrease of 45.6% and 48.2% respectively compared to the previous year. The decline in sales amount was significantly higher than the decline in sales area, reflecting the immense pressure the company faces in terms of housing sales scale and speed in the continued sluggish real estate market.
According to Vanke’s semi-annual report, the company continues to promote risk management to mitigate various risks, but the current operating situation remains extremely severe, with risk management tasks still being formidable.
Vanke is one of the large real estate developers in China, and its equity structure has undergone significant changes in recent years. In 2017, Shenzhen Metro Group became Vanke’s largest shareholder, establishing a close connection between Vanke and Shenzhen’s state-owned assets, with the state-owned background becoming increasingly prominent.