China Vanke warns losses widened to record last year
The results illustrate how the country’s years-long property crisis is not over
CHINA Vanke reported its losses widened by two-thirds to a record last year, citing a sharp decline in its property developments and additional provisions.
The troubled developer’s preliminary net loss in 2025 bloated to about 82 billion yuan (S$15 billion), compared with 49.5 billion yuan the previous year, according to a filing with the Hong Kong stock exchange on Friday (Jan 30).
“The scale of settlement for real estate development projects declined significantly, and gross profit margins remained low,” the company said in the filing. “Due to the increased exposure to business risks, the company has made additional provision for credit impairment and asset impairment.”
The results illustrate how the country’s years-long property crisis, which has toppled former giants such as China Evergrande Group, is not over. Vanke, which was once China’s largest homebuilder, is now at the epicentre of attention and had to recently get an extension on the repayment of some bonds to avoid default.
Vanke got clearance from creditors to repay 40 per cent of the principal on Wednesday on two bonds it had failed to repay at maturity last month, filings late Tuesday showed. The partial repayments amount to 2.5 billion yuan, plus a further 413 million yuan due on Friday on a separate security, according to Bloomberg calculations based on prior filings.
Still, there are signs of relief for the ailing sector. Local media reported this week that developers are no longer required by the regulator to submit a key set of metrics designed to rein in their debt buildup, triggering a rally in Chinese developer shares on Thursday.
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But on Friday, Vanke shares fell 5.9 per cent to HK$3.80 in Hong Kong on Friday, extending their losses in the past year to more than 30 per cent. BLOOMBERG
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