China Vanke (000002) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 70.17 billion, down 33.4% year-over-year; net loss attributable to shareholders was RMB 14.95 billion, with a basic EPS of -1.25 yuan.

• Gross margin for main business was 7.88%, with real estate development and related asset operations at 6.06% and property services at 12.67%.

• Cash flow from operating activities turned positive at RMB 495 million, compared to a negative RMB 3.04 billion in H1 2025.

• The company continued to face a challenging real estate market, with national new home sales area down 11.6% and sales value down 13.6% year-over-year.

Financial highlights

• Operating profit was -RMB 12.51 billion, down 41.8% year-over-year; total profit was -RMB 13.49 billion, down 47.6%.

• Net assets attributable to shareholders fell 12.6% to RMB 102.18 billion.

• Total assets decreased 6% to RMB 959.76 billion; total liabilities decreased 5.2% to RMB 743.96 billion.

• Net debt ratio rose to 135.4% (up 11.9 percentage points from year-end 2025); asset-liability ratio at 77.5%.

• Non-recurring losses (mainly asset impairment and fair value changes) totaled RMB 1.11 billion.

Outlook and guidance

• The company expects continued volatility in the real estate sector but anticipates stabilization as policy support and the "15th Five-Year Plan" are implemented.

• Focus will remain on asset quality improvement, core city concentration, product innovation, and digital transformation.

• No interim dividend, bonus shares, or capital increase from reserves for H1 2026.