China Vanke Sees Deeper Quarterly Losses; Plans A-Share Sale

HONG KONG (Romero.my.id) -China Vanke's shares dropped on Wednesday following the release of their quarterly report showing increased losses for the first quarter and approval to offload A-shares equivalent to 0.61% of their overall share capital.

Vanke's stocks traded in Hong Kong fell by up to 2.9% at the start of the day, whereas those listed in Shenzhen declined by 2.6%.

In January, Vanke, a prominent Chinese real estate company, initiated a senior leadership restructuring aimed at boosting state supervision and involvement to manage potential default risks during an extended industry downturn.

In the first quarter from January to March, the firm reported a net loss totaling 6.2 billion yuan ($852.26 million), as disclosed in documents filed on Tuesday, marking an increase from the previous year’s deficit of 362 million yuan. When excluding adjustments for fair value changes, the fundamental loss worsened to 6 billion yuan from 1.7 billion yuan previously.

Vanke blamed its quarterly net loss – following a record annual loss of 49.5 billion yuan in 2024 – on reduced property deliveries and shrinking profit margins.

In the stated timeframe, Vanke obtained 13.9 billion yuan from new financings and refinancings, witnessing a decline of 21 basis points compared to the previous year, bringing their average financing costs down to 3.39%.

In an independent document, Vanke stated that its primary shareholder, state-owned Shenzhen Metro, plans to provide a 3.3 billion yuan loan extension to the company for repaying public bonds.

The fresh shareholder loan comes after a 2.8 billion yuan loan provided in February, indicating further steps taken by the government to stabilize the property developer.

Vanke announced that it plans to change its auditing firm from KPMG to Deloitte, concluding over two decades of collaboration with the former company.

($1 = 7.2748 CNY)

(Clare Jim reporting; edited by Sherry Jacob-Phillips)