The developer’s losses since 2024 reached 153 billion yuan as cash holdings fell and 179 billion yuan of liabilities came due within a year.
China Vanke reported a 14.95 billion yuan ($2.2 billion) net loss for the first half, underscoring the distressed developer’s liquidity strain as major debt payments approach.
The loss compared with 11.95 billion yuan a year earlier and brought Vanke’s combined losses since 2024 to 153 billion yuan. Revenue plunged 33% to 70.2 billion yuan.
Cash and cash equivalents fell 23% to 53.8 billion yuan, while interest-bearing liabilities declined about 4% to 351 billion yuan. About 179 billion yuan of that debt is due within a year, according to the company’s filing.
Vanke said available working capital was relatively tight. It plans to accelerate sales, collect receivables and exit non-core businesses in an orderly manner.
The developer elected a new board in July under the full control of authorities in Shenzhen. Its state backer, Shenzhen Metro Group, holds about 27% of Vanke and provided more than 30 billion yuan in loans last year and another 4.5 billion yuan so far this year, according to Bloomberg calculations and the filing.
Vanke said it will formulate repayment plans, including debt extensions, for public bonds maturing between August and June next year. Support from Shenzhen Metro faces a test in mid-December, when an extended 3% yuan bond matures.
