Vanke Warns of $11.8 Billion Loss as Property Slump Persists
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China Vanke Co. Ltd. (000002.SZ) warned that its net loss for 2025 widened 65.7% year-on-year to approximately 82 billion yuan ($11.8 billion), as the country’s real estate downturn claimed one of its most resilient players.
The deepening red ink at the state-backed giant underscores the severity of China’s property crisis, which has left Vanke with an estimated 131.5 billion yuan in losses over the past two years. Once considered a bellwether of financial stability with profits peaking at over 41 billion yuan in 2020, Vanke recorded its first annual loss since its 1991 listing in 2024 and has seen its financial position deteriorate rapidly since the second half of 2021.
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- China Vanke reported a 2025 net loss of about 82 billion yuan, a 65.7% increase year-on-year, amid ongoing real estate market troubles.
- Losses were driven by high land costs, falling housing demand, low margins, write-downs, asset sales, and operating investment losses.
- Liquidity remains tight; Vanke secured loans and bond extensions but six corporate bonds were suspended and labeled “specific bonds” due to restructuring.
- China Vanke Co. Ltd.
- China Vanke Co. Ltd. (Vanke) reported a widened net loss of approximately 82 billion yuan in 2025, marking its second consecutive annual loss. This deterioration is attributed to the real estate downturn, leading to reduced settlement scale, low gross margins, and significant inventory write-downs. The company also faces ongoing liquidity pressures despite financial support from its largest shareholder, Shenzhen Metro Group.
- Shenzhen Metro Group Co. Ltd.
- Shenzhen Metro Group Co. Ltd. is the largest shareholder of China Vanke Co. Ltd. This state-owned entity provided substantial support to Vanke, including nearly 30.8 billion yuan in loans during the first 11 months of 2025. However, a funding cap imposed by Shenzhen Metro in November 2025 triggered a liquidity crunch for Vanke.
- Between 2018 and 2021：
- Vanke aggressively expanded its land bank, with average land costs rising.
- 2020：
- Vanke’s profits peaked at over 41 billion yuan.
- Second half of 2021：
- Vanke's financial position began to deteriorate rapidly.
- 2024：
- Vanke recorded its first annual loss since its 1991 listing.
- Second quarter of 2024：
- Vanke began streamlining non-core operations, seeking asset disposals.
- First 3 quarters of 2025：
- Vanke lost approximately 28 billion yuan.
- First 11 months of 2025：
- Shenzhen Metro provided Vanke nearly 30.8 billion yuan in loans.
- Early November 2025：
- Shenzhen Metro imposed a limit on borrowing to Vanke.
- Fourth quarter of 2025：
- Vanke recorded a deficit of roughly 54 billion yuan.
- By January 30, 2026：
- Vanke was required to make upfront cash payments and settle interest totaling over 2.8 billion yuan, with support from a fresh 2.36 billion yuan loan from Shenzhen Metro.
- Last month (January 2026)：
- Vanke reached agreement with bondholders to extend three onshore bonds.
- Friday, January 30, 2026：
- Earnings forecast and filings released; Vanke required to settle payments as part of debt restructuring.
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