China Vanke (000002) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB233.43 billion, down 32% year-over-year, with a net loss attributable to shareholders of RMB88.56 billion, a 79% deeper loss than 2024.

• Gross profit margin fell to 0.5%, and basic loss per share was RMB7.45, compared to RMB4.17 in 2024.

• The company delivered 117,000 housing units, revitalized RMB33.85 billion in inventory, and completed RMB11.3 billion in bulk asset transactions.

• Management focused on risk mitigation, capital structure optimization, and operational improvement, but liquidity pressures and industry headwinds persisted.

Financial highlights

• Revenue: RMB233.43 billion (down 32% YoY); net loss: RMB88.56 billion (up 79% YoY).

• Gross profit: RMB1.26 billion (down 95% YoY); net cash from operating activities: -RMB988 million.

• Net assets per share: RMB9.80 (down 43% YoY); gearing ratio: 76.89% (up 3.23pp); net debt ratio: 123.48% (up 42.88pp).

• Interest-bearing liabilities: RMB358.48 billion; cash on hand: RMB67.24 billion.

• No dividend declared for 2025 due to operating loss.

Outlook and guidance

• 2026 will focus on risk mitigation, operational improvement, and strategic withdrawal from non-core cities and businesses.

• Plans to deepen resource revitalization, enhance product/service capabilities, and leverage technology for efficiency.

• Emphasis on “good housing” and urban renewal, with continued cost control and asset optimization.