Shenzhen State-owned Assets Supervision and Administration Commission-owned Shenzhen Metro Group recently released its financial report, recording a net loss of 33.46 billion yuan last year. The loss was attributed to the confirmation of investment losses in its long-term equity investment in Vanke. In the same year, Shenzhen real estate developer Vanke reported a net loss attributable to shareholders of 49.4 billion yuan, and this year’s first quarter once again saw significant losses.
Shenzhen Metro Group Limited (referred to as Shenzhen Metro Group) issued its annual report for the year 2024 on April 29. In 2024, Shenzhen Metro Group achieved a revenue of 21.189 billion yuan, a decrease of 15.74% compared to the previous year.
During the reporting period, Shenzhen Metro Group incurred a loss of 33.461 billion yuan within the consolidated financial statements, accounting for 10.46% of the net assets at the end of the previous year, exceeding 10%.
As of December 31, 2024, Shenzhen Metro Group recorded total current liabilities of 114.859 billion yuan, total non-current liabilities of 329.929 billion yuan, with total liabilities amounting to 444.788 billion yuan.
Shenzhen Metro Group is a large state-owned enterprise directly under the Shenzhen State-owned Assets Supervision and Administration Commission, known in the market as the “most profitable subway company.”
Regarding the reasons for the financial loss, Shenzhen Metro Group explained that “the company confirmed investment losses in its long-term equity investment in Vanke, and recognized an impairment loss on investment, leading to this year’s financial loss.”
Vanke Group is one of China’s largest real estate developers, with business operations including residential development, property management, and commercial real estate, headquartered in Shenzhen. Since 2017, Shenzhen Metro Group has been the largest shareholder of Vanke, with the former under the supervision of Shenzhen State-owned Assets Supervision and Administration Commission, and was once called the “most profitable subway company.”
On April 29, Vanke released its first quarter report for 2025. In the first quarter of this year, the company recorded a net profit loss attributable to shareholders of listed companies of 6.246 billion yuan, a sharp decrease of 1625.63% year-on-year.
Vanke’s 2024 annual performance report released last month already showed a net profit loss attributable to the parent company of 49.478 billion yuan, a decrease of 506.79% year-on-year, making it one of the largest listed companies in terms of loss in the A-share market in 2024.
As of March 31, 2025, Vanke’s total liabilities amounted to 914.065 billion yuan. By the end of 2024, Vanke had interest-bearing debts amounting to a high 361.28 billion yuan, with short-term debts accounting for 43.8% and a short-term debt coverage ratio of only 55.7%. The liquidity risk is still a concern.
With Vanke’s performance continuing to decline, Shenzhen Metro Group as its largest shareholder is taking the brunt of it. Faced with liquidity pressure from Vanke, both Shenzhen State-owned Assets Supervision and Administration Commission and Shenzhen Metro Group have been providing continuous support. Since last year, Shenzhen Metro Group has invested approximately 11.5 billion yuan in supporting Vanke, yet has not recovered the investment costs from Vanke.