China Vanke's Losses Widened in 2025 on Continuing Liquidity Crunch

By Jason Chau

China Vanke's losses widened in 2025, as the Chinese property developer continues to grapple with a prolonged liquidity crunch.

Net loss widened to 88.56 billion yuan, equivalent to $12.84 billion, up 79% from the 49.48 billion yuan incurred in 2024, the developer said late Tuesday. Annual revenue also declined 32% to 233.43 billion yuan, down from 343.18 billion yuan in the prior year.

Vanke acknowledged that the earnings fell short of shareholders' expectations and attributed the weak result to an increase in inventory and credit impairment provisions.

Earnings were also impacted by several projects with high land costs entering the settlement phase, it said.

The developer said its liquidity pressure intensified further in 2025 as it faced several public debt repayments. "It will take time to resolve the burdens and issues arising from the previous 'high-debt, high-turnover and high-leverage' development model," it said.

Large Chinese property developers have been hit hard by a liquidity crisis since 2021, when the housing market entered a prolonged downturn. Vanke is among the few developers that have yet to default.

In late January, Vanke received approval from bondholders to push back repayment on debt and obtained a fresh loan from state-owned shareholder Shenzhen Metro Group, giving it more breathing room and avoiding a default.

Morningstar analyst Jeff Zhang expects the loan extensions to ease some investor concerns over further balance sheet deterioration, though he remains downbeat on the company's earnings outlook due to weak property sales margins.

The company faces a year of tight liquidity and heavy maturities ahead, with around 15 billion yuan of capital market debt due from April to December, Fitch Ratings analysts said in a note. They warned that its cash balance may be restricted and not readily available for debt repayment.

"China Vanke may not be able to repay its debt obligations without additional shareholder support," they added.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

March 31, 2026 21:15 ET (01:15 GMT)