China Vanke (000002) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 105.3 billion, down 26.2% year-over-year; net loss attributable to shareholders was RMB 11.95 billion, with a basic loss per share of RMB 1.01, both declining over 21% year-over-year.

• Gross margin for property development improved to 8.1%, and property services gross margin rose to 13.9%.

• Cash flow from operations was negative RMB 3.04 billion, an improvement from the prior year.

• The company did not declare an interim dividend.

Financial highlights

• Total assets at June 30, 2025: RMB 1.19 trillion, down 7.2% from year-end 2024.

• Net assets attributable to shareholders: RMB 191.4 billion, down 5.5% from year-end.

• Net debt ratio increased to 90.4% from 80.6% at year-end; asset-liability ratio slightly decreased to 73.1%.

• Operating loss for H1 2025 was RMB 8.82 billion; total loss before tax was RMB 9.14 billion.

• Non-recurring losses included asset impairment and losses on asset disposals.

Outlook and guidance

• The company expects the real estate sector to remain in a bottoming phase in the short term, but anticipates stabilization as supportive policies take effect.

• Strategic focus will be on core business, asset optimization, debt risk mitigation, technological innovation, and resource integration.