China Vanke posted a record 88.56 billion yuan (US$12.83 billion) loss last year in the latest sign that mainland Chinese property developers continue to struggle under debt pressure and slowing residential sales as a full market recovery remains nowhere in sight following five years of decline.
The developer said its annual revenue amounted to 233.43 billion yuan, down 32 per cent year on year. The basic loss per share was 7.45 yuan, down 78.4 per cent.
The loss, which exceeded Vanke’s 82 billion yuan forecast, was its second full-year loss since its 1991 initial public offering. In 2024, the company posted a loss of 49.48 billion yuan.
It sold 10.25 million square metres (110.33 million square feet) of property last year, down 43.4 per cent year on year, and recorded sales revenue of 134.06 billion yuan, down 45.5 per cent, Vanke said in filings to the Hong Kong stock exchange on Tuesday night.
There are some pockets of stabilisation … but overall conditions remain subdued
James Macdonald, head of research for China at property consultant Savills, said a broad-based recovery in the residential sector had yet to be seen.