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China Vanke swung to a net loss in 2024 and warned of intensifying financial pressure ahead as the developer continues to feel the strain of China's years-long property crisis.
The Shenzhen-based developer, one of the biggest property groups in China, reported a net loss of 49.48 billion yuan, equivalent to $6.82 billion, for 2024. That compared with a profit of 12.16 billion yuan a year earlier.
In a filing on Monday, the company attributed the loss to fewer completed and settled projects and gross profit margin of its development business, financial losses, and other factors.
Revenue fell 26% to 343.18 billion yuan in 2024.
Vanke said it faces concentrated repayment of public debts in 2025 that will ramp up the pressure it is already under. The company said it has engaged in "self-rescue" with the support of various parties, but that liquidity risks have not been fully resolved.
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[Despite government support] many property developers are struggling to stay afloat, saddled with big piles of debts and weak demand. An inability to tap debt markets has led to defaults on loans and bond payments, and even bankruptcy.
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