China Vanke (000002) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RMB 37.99 billion, down 38.3% year-over-year due to a decline in delivery scale.

• Net loss attributable to shareholders was RMB 6.25 billion, compared to a loss of RMB 362 million in Q1 2024.

• Operating cash flow improved but remained negative at RMB -5.79 billion, a 38.5% improvement year-over-year.

• The group implemented a comprehensive reform and risk mitigation plan, with strong support from major shareholders and financial institutions.

Financial highlights

• Gross margin for Q1 2025 was 6.1%, down 4.7 percentage points year-over-year.

• Basic and diluted EPS were both -0.5268, a significant decline from -0.0305 in Q1 2024.

• Total assets at quarter-end were RMB 1.24 trillion, down 3.3% from year-end 2024.

• Asset-liability ratio stood at 73.5%.

• Cash and equivalents at quarter-end were RMB 75.5 billion.

Outlook and guidance

• The company continues to focus on stabilizing operations, improving cash flow, and advancing high-quality development.

• Ongoing policy support and market stabilization efforts are expected to gradually restore confidence in the real estate sector.