Vanke: From April to July, debt repayment pressure is high; actively seeking long-term solutions to resolve the issue.

On March 31, Vanke A (000002) held an analyst meeting after disclosing its annual report, with Chairman Huang Liping and others attending. At the meeting, Vanke admitted that the public debt repayment pressure from April to July ahead is particularly prominent, and the company will actively seek solutions to resolve its debt in a long-term and sustainable manner.

Debt resolution: seeking long-term solutions

The financial statements disclosed that day show that in 2025, Vanke achieved operating revenue of RMB 233.43 billion and a net loss of RMB 88.56 billion. The company’s performance is still constrained by a significant decline in the settlement scale of real estate development projects and a gross margin that remains at a low level; additional provisions for credit impairment and asset impairment; and factors such as certain large-lot asset transactions and equity transactions being priced below their book values.

In the annual report, the company stated directly that in 2025, it actively carried out self-rescue efforts and completed the repayment of RMB 33.21 billion in publicly issued bond debt. Among them, starting from November 2025, the company gradually completed extensions for two medium-term notes, “22 Vanke MTN004” and “22 Vanke MTN005,” as well as one corporate bond, “H1 Vanke 02.”

“However, affected by multiple external and internal factors, the company’s current operating situation remains extremely severe.” Vanke’s executives said at the earnings briefing.

By the end of the reporting period, Vanke’s net debt-to-asset ratio was 123.5%, and its asset-liability ratio was 76.9%. Of this, interest-bearing liabilities totaled RMB 358.48 billion, while interest-bearing liabilities due within one year were RMB 160.56 billion, accounting for 44.8%. In 2026, Vanke will continue to face a total of RMB 14.68 billion in publicly issued debt due, including RMB 11.27 billion concentrated due from April to July, with repayment pressure particularly prominent.

“Next, the company will adhere to a candid and pragmatic approach, maintaining close communication and consultation with creditors, and as a starting point to safeguard the long-term interests of all parties. Based on the company’s actual operating conditions, we will actively seek solutions to resolve debt in a long-term and sustainable manner. We also earnestly ask all parties to continue to offer understanding, support, and tolerance, to move in the same direction as the company, and to provide the company with time and space to resolve risks, creating a stable environment for the company to restore healthy operations as soon as possible.” Vanke’s executives said at the meeting.

Development business: delivering homes on schedule and revitalizing resources

As for the company’s core development business, Vanke said that delivering homes on schedule will be its top priority, and in 2025 it will complete, with quality, the delivery of 117,000 units of apartments on schedule.

Regarding the housing delivery tasks for 2026, Vanke’s executives emphasized that ensuring on-time delivery of homes will be the first priority. The company will drive forward efforts from multiple dimensions, including whole-cycle schedule management, supply chain and funding assurance, risk closed-loop management, and end-to-end quality control, to continuously improve delivery quality.

The financial report shows that in 2026, Vanke’s existing projects plan to start new construction and resume construction with a planned gross floor area of 3.061 million square meters; the company expects planned gross floor area upon project completion of 7.441 million square meters. Both targets are cut roughly in half compared with the previous year. As of the end of 2025, within Vanke’s consolidated reporting scope, there are still 10.969 million square meters of sold resources that have not yet been settled.

Looking back at 2025, all of Vanke’s newly added resource reserves were obtained through the revitalization of existing projects. Vanke said that in 2026, the company will focus on advancing resource revitalization, systematically sorting out resources that can be revitalized, focusing on key projects, and coordinating resources from all parties to fully drive the revitalization work forward. This includes closely tracking and striving for local government support policies in areas such as reclaiming existing land and purchasing existing commodity housing, to push key projects to achieve breakthroughs.

Operating services business: independent and mature

As for Vanke’s operating services business, Vanke’s executives introduced at the meeting that the related business is already relatively mature. The various operating service businesses are relatively independent, and the company has already achieved a certain scale and brand advantages, with overall operations making steady progress. For example, Vanke Cloud (万物云) is an independent listed company that has developed into a leading top-tier property services enterprise in the industry in terms of scale and comprehensive service capabilities.

“Facing the current business challenges, the company has made sufficient preparations for the stable operation of its operating services business, including organizational safeguards, team stability, and mechanism support.” Vanke’s executives emphasized at the meeting. “The company will always uphold the service purpose of ‘putting customers at the center,’ fully ensure that the work of defusing risks is carried out in an orderly manner, and ensure the stability of production and operations.”

In addition, regarding the recent personnel information with many rumors, Vanke responded that talent mobility is a normal feature in the market. The company’s existing colleagues have also chosen new platforms based on their personal career plans, and it also continues to attract excellent talent from all quarters to join. And there are also tens of thousands of strivers who remain at Vanke, moving forward alongside the company.

A reporter noted that, according to the financial report, the total pre-tax remuneration in 2025 for Vanke’s current directors—Huang Liping, Hu Guobin, and Lei Jiangsong—and for the outgoing chairman Xin Jie were all 0. Except for Hu Guobin, the other three received remuneration from related parties. In addition, Yuliang, who retired in January, still received RMB 242,000 in pre-tax remuneration in 2025.

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