(Jan 30): China Vanke Co 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, compared with 49.5 billion yuan the previous year, according to a filing with the Hong Kong stock exchange on Friday.
“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, isn’t 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% of the principal on Wednesday on two bonds it had failed to repay at maturity last month, filings late on 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.
See also: China plans US$29 bil capital injection into biggest insurers — Bloomberg
But on Friday, Vanke shares fell 5.9% to HK$3.80 in Hong Kong, extending their losses in the past year to more than 30%.
Uploaded by Felyx Teoh
