Vanke Reports H1 Revenue of 70.169 Billion Yuan with a Loss of 14.951 Billion Yuan
nashnova research
China Vanke (02202) reported RMB 70.169 billion in revenue and a RMB 14.951 billion net loss attributable to shareholders for 1H 2026 — shrinking settlement volumes, fresh impairments, and depreciation drag reveal a developer trapped between losses on sales and losses on holding.
Where did the RMB 15 billion loss come from?
Three forces squeezed at once: lower settlement volume shrank revenue, new asset impairments ate into margins, and depreciation on held properties turned paper income into book losses.
This means → the problem goes beyond "selling homes cheaply." Even assets Vanke keeps are bleeding on the balance sheet.
Gross profit was just RMB 1.632 billion against RMB 70.169 billion in revenue — a gross margin of roughly 2.3%. In plain terms = for every RMB 100 of goods sold, only RMB 2.30 remained as gross profit — barely above cost.
What does the revenue mix signal?
Property development and related operations contributed RMB 48.70 billion, or 69.4% of revenue; property services brought in RMB 18.46 billion, or 26.3%.
Full-scope revenue from operational services reached RMB 28.85 billion, up 1.6% year-on-year. This reflects a faint positive signal in Vanke's pivot away from pure development — services are still growing, but the scale is far too small to offset the development decline.
Put simply = home sales remain the main engine, but that engine is shrinking; the services business is growing, yet it is a tugboat trying to pull an ocean liner.
Can Vanke still sell and deliver homes?
First-half contracted sales reached RMB 35.80 billion, while 23,000 units were delivered on schedule.
Vanke launched a "city-focus strategy," concentrating resources on core cities and unlocking RMB 15.58 billion in latent project capacity. This means → the company is deliberately narrowing its front line, channeling limited firepower into cities that still generate demand.
Administrative expenses fell 13% year-on-year — the eighth consecutive quarter of cost cuts.
How far along is the debt-defusing effort?
First-half new financing and refinancing totaled RMB 4.08 billion (excluding shareholder loans), at a blended cost of 2.86% on outstanding debt.
Major shareholder Shenzhen Metro has extended roughly RMB 4.52 billion in shareholder loans this year, at rates and collateral terms better than market norms. This reflects Shenzhen Metro still backing Vanke with real capital.
Since 2025, Vanke has completed repayment or risk resolution on roughly RMB 48.5 billion in maturing public bonds; 10 public bonds — totaling about RMB 18.1 billion in principal — were de-risked through partial repayment plus maturity extensions.
How far is Vanke from exiting the loss cycle?
Two verification checkpoints matter most: whether debt resolution can keep advancing, and when development settlement volumes stabilize.
In plain terms = the first question is "can the old debt keep soft-landing?"; the second is "when does new-home revenue stop falling?"
If either answer turns negative, the loss cycle has no visible end — and right now, both remain works in progress with no conclusion.
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