China Vanke Expects First-Half Loss to Widen to Up to $2.21 Billion

By Megan Cheah

China Vanke expects its net loss for the six months to widen, weighed by a weak real-estate market.

The property developer said Friday that its first-half loss is expected at between 12.0 billion yuan to 15.0 billion yuan, equivalent to $1.77 billion to $2.21 billion. Its loss for the corresponding period a year earlier was 11.95 billion yuan.

Vanke attributed the loss to a significant decline in the scale of settlements for real-estate development projects, which kept its gross profit margins low. It also made additional provisions for asset impairment after taking into account "changes in the industry, market and business environment," Vanke said.

"At present, there is no sign of substantial improvement in the operating metrics of the company, and its debts and liquidity are still under pressure," the developer said.

The company completed delivery of around 23,000 housing units on schedule in the first half, said Vanke. It also obtained bondholders' consent to extend the maturity of 10 publicly issued bonds.

Looking ahead, Vanke said it aims to focus on key cities and its core businesses while withdrawing investments in noncore businesses. It also aims to optimize its corporate governance system, improve efficiency and reduce costs.

Vanke's Shenzhen-listed shares dropped 1.9% to 3.05 yuan, bringing year-to-date losses to 34%. The Hong Kong-listed stock was last 0.85% lower and has fallen 28% this year so far.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

July 12, 2026 21:46 ET (01:46 GMT)