Recently, 52 real estate companies listed on the A-share stock market have disclosed their third-quarter reports, with over 70% of them experiencing a year-on-year decline in net profit for the first three quarters. Among them, the leading real estate enterprise, Poly Developments, saw its net profit drop by over 41%. Additionally, 18 companies reported a net loss for the period, with Vanke, in particular, facing a net loss of over 17.9 billion yuan.
On the evening of October 30, Vanke Group released its third-quarter report for 2024. The data revealed that from January to September this year, Vanke achieved a total operating income of 219.89 billion yuan. However, the net loss attributable to shareholders of the listed company amounted to 17.94 billion yuan.
In the third quarter alone, Vanke’s operating income reached 77.12 billion yuan, with a net loss of 8.09 billion yuan attributable to shareholders of the listed company.
In terms of public debt, as of the end of September, Vanke had already repaid 19.7 billion yuan in public debts, with a total repayment of interest-bearing debts of around 70 billion yuan for the first three quarters, and no domestically or internationally issued public bonds were due for the year.
The third-quarter report showed that by the end of September, Vanke’s interest-bearing debts totaled 327.61 billion yuan, of which more than a year’s maturity debt accounted for 64.4%. The company also held cash and cash equivalents of 79.75 billion yuan.
Addressing the performance loss, Vanke explained in its quarterly report that it was mainly due to a decline in the settlement scale and gross profit margin of its development business, provision for impairment, losses from non-core financial investments, as well as some assets and equity transactions where prices were lower than book values.
According to public data, Vanke was once one of China’s largest real estate developers, with Shenzhen Metro Group as its largest shareholder. In the latest ranking of Chinese property developers by sales, Vanke ranked fourth after Country Garden, China Overseas Land & Investment, and Poly Developments.
Lately, many A-share listed real estate companies have been disclosing their third-quarter reports, indicating that the industry’s profit is still under pressure.
As the leading real estate company in China, Poly Developments experienced a decline in both revenue and profit in the first three quarters of this year.
Poly Developments released its third-quarter report for 2024 on October 28. According to the report, the company achieved an operating income of 182.774 billion yuan for the first three quarters of 2024, a year-on-year decrease of 5.06%, while its net profit attributable to the parent company was 7.813 billion yuan, down by 41.23% year-on-year.
In the third quarter alone, Poly Developments recorded an operating income of 43.525 billion yuan, a 21.62% decline from the same period last year, with a net profit attributable to the parent company of 393 million yuan, down by 63.31% year-on-year. This marked the first decline in revenue and profit for Poly Developments in 2024, and the decline was significant.
According to a report by “First Financial”, the real estate industry is facing the longest period of continuous losses ever recorded. Following losses in 2022 and 2023, the trend of declining profitability among listed real estate companies seems to persist, with no significant reversal seen in the first three quarters of this year.
Based on Wind data, as of October 30, a total of 52 real estate companies on the A-share market have disclosed their third-quarter reports. Among them, 18 companies reported a net loss for the first three quarters, while over 70% of the companies saw a year-on-year decline in net profit, with only 7 companies experiencing a slight rebound due to their small base, and 6 companies managing to narrow their losses. Overall, the industry’s profit margins remain narrow.