Wanke A Semi-Annual Report Template

China Vanke Co., Ltd. (SZSE: 000002; HKEX: 2202) is one of China’s largest residential property developers. Founded in Shenzhen in 1984 and listed on the Shenzhen Stock Exchange since 1991, the company has spent four decades evolving from a trading house into a diversified urban and spatial services group. Beyond its core property development business, Vanke operates property management through Onewo (万物云), logistics and warehousing via Wanwei Logistics (万纬物流), rental apartments under the Port Apartment (泊寓) brand, shopping-mall investment through Inlife (印力集团), and a cogeneration unit. Shenzhen Metro Group, a state-owned enterprise, is the largest shareholder and has been providing liquidity support, including shareholder loans on terms more favorable than market practice. The current chairwoman is Xu Enli.

The first half of 2026 remained a period of active de-risking for Vanke, with results still under pressure but early signs of stabilization emerging.

– **Revenue:** Operating income fell 33.4% year-on-year to RMB 70.17 billion, driven mainly by a 45.9% decline in revenue recognized from development projects as the settlement scale contracted. – **Losses:** Net loss attributable to shareholders widened 25.2% to RMB 14.95 billion (basic EPS: -1.25). Key drags included a still-low consolidated gross margin of 7.9%, RMB 4.27 billion of new impairment provisions, and an investment loss of RMB 3.34 billion from jointly operated projects. – **Balance sheet:** Total assets stood at RMB 959.8 billion at June 30, down 6.0% from the start of the year, with total liabilities of RMB 744.0 billion and a debt-to-asset ratio of 77.5%. Interest-bearing debt totaled RMB 351.3 billion at an average funding cost of 2.86%, down 17 basis points since January. – **Cash flow:** The standout improvement was operating cash flow, which swung to a net inflow of RMB 495 million from a RMB 3.04 billion outflow a year earlier — up 116.3% — helped by the delivery of 23,000 homes.

On the operational front, contracted sales fell 48.2% to RMB 35.8 billion amid a subdued market. Mitigating this, the operating-services businesses proved resilient with revenue of RMB 28.85 billion (+1.6%), led by Onewo at RMB 19.19 billion (+5.6%). Financial risk mitigation advanced steadily: since 2025 the company has resolved roughly RMB 48.5 billion of maturing public bonds through repayment or risk treatment, while new financing and shareholder loans totaling RMB 8.6 billion were secured in the half.

Overall, Vanke’s H1 2026 report depicts a developer still absorbing deep losses, but with liquidity defense, operating cash flow turning positive, and steady support from its state-owned parent providing a clearer path through restructuring.