Chinese real estate giant Vanke announced its semi-annual report for 2025, revealing a net loss of 11.95 billion yuan in the first half of the year, with continued pressure on performance. During the reporting period, Vanke relied on its largest shareholder, Shenzhen Metro Group, to provide a total of 23.88 billion yuan in loans to maintain operations, and employed various methods to activate existing assets to deal with debt pressure.
On the evening of August 22nd, Vanke released its half-year report, showing that the company achieved operating income of 1,053.2 billion yuan in the first half of this year, with a net loss attributable to shareholders of the listed company of 119.5 billion yuan, representing respective decreases of 26.2% and 21.3% compared to the previous year.
In terms of business structure, revenue from real estate development and related asset management operations amounted to 844.4 billion yuan, accounting for 80.2%; property services revenue was 170.9 billion yuan, accounting for 16.2%. In terms of sales, Vanke achieved a sales area of 5.389 million square meters, with a sales amount of 691.1 billion yuan, representing respective decreases of 42.6% and 45.7% year-on-year.
Vanke’s management explained that the loss was mainly due to a significant decrease in the settlement scale of real estate development projects, with profit margins still at a low level. At the same time, considering the increased business risk exposure, the company made additional provisions for asset impairment, as some bulk asset transactions and equity transactions were priced below book value.
Facing ongoing operational pressure, Vanke primarily relied on financial support from its largest shareholder, Shenzhen Metro Group, to maintain operations. The report indicated that Shenzhen Metro Group has provided a cumulative shareholder loan of 23.88 billion yuan to Vanke.
In addition to shareholder loans, Vanke also received support from various financial institutions in the first half of the year, with a total of 24.9 billion yuan in financing and refinancing within the consolidated financial statements. Through multiple sources of funding support, Vanke successfully completed the repayment of 24.39 billion yuan in public debt, with no overseas public debt due before 2027.
Vanke’s management stated that the company will implement multiple measures to achieve self-rescue, planning to accelerate sales receipts, dynamically control development pace, and balance income and expenses reasonably, striving to achieve positive operating cash flow. However, industry insiders believe that Vanke’s predicament as a leading real estate enterprise reflects the systemic challenges facing the entire industry, and the industry’s recovery will still take time.