China Vanke (000002) H2 2025 earnings summary

Executive summary

• 2025 saw a significant expansion of losses, with net loss attributable to shareholders reaching RMB 88.56 billion, a 79% increase year-over-year, driven by high land cost projects, inventory write-downs, and credit impairment provisions.

• Revenue declined 32% year-over-year to RMB 233.43 billion, reflecting a sharp contraction in real estate sales and settlement volumes.

• The company maintained its focus on risk mitigation, asset revitalization, and operational improvement, including the timely delivery of 117,000 housing units and the disposal of non-core assets.

• No dividend was proposed for 2025 due to ongoing losses and unaddressed accumulated deficits.

Financial highlights

• Operating income: RMB 233.43 billion, down 32% year-over-year.

• Net loss attributable to shareholders: RMB 88.56 billion, compared to RMB 49.48 billion loss in 2024.

• Basic and diluted EPS: -7.45 yuan, down from -4.17 yuan in 2024.

• Gross margin for real estate development: 8.1%, and for property services: 12.3%.

• Net asset value per share: RMB 9.80, down 43% year-over-year.

• Net debt ratio: 123.5%, up 42.9 percentage points from 2024.

• Operating cash flow: -RMB 988 million, compared to +RMB 3.8 billion in 2024.

Outlook and guidance

• 2026 will focus on risk mitigation and business recovery, with continued asset revitalization, cost control, and strategic withdrawal from underperforming cities and businesses.

• Planned new construction and completion areas for 2026 are 3.06 million and 7.44 million square meters, respectively.

• The company will deepen its “good housing” product system, enhance technology integration, and pursue full-cycle real estate operation services.