---
title: "Vanke Q1 Revenue Falls Nearly 24% Year-on-Year, Net Loss Narrows Slightly to RMB 5.95 Billion | Financial Report Insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284582046.md"
description: "Vanke's Q1 performance remained under pressure, with revenue down 23.9% year-on-year and a net loss of RMB 5.95 billion, though the loss narrowed slightly compared to the previous year. Highlights included a gross margin recovery to 9.1%, a 62.7% significant reduction in net cash outflows from operating activities, and initial success in cost and expenditure control. Diversified businesses served as key support pillars, with steady growth in property management, commercial, logistics, and leasing sectors"
datetime: "2026-04-29T13:19:22.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284582046.md)
  - [en](https://longbridge.com/en/news/284582046.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284582046.md)
---

# Vanke Q1 Revenue Falls Nearly 24% Year-on-Year, Net Loss Narrows Slightly to RMB 5.95 Billion | Financial Report Insights

Vanke disclosed its first-quarter report for 2026 on the 29th, with performance continuing to face significant pressure.

During the reporting period, **the company achieved operating revenue of RMB 28.93 billion, a substantial year-on-year decrease of 23.9%; the net loss attributable to shareholders of the listed company was RMB 5.95 billion, a slight narrowing from the loss of RMB 6.25 billion in the same period last year, representing a year-on-year loss reduction of approximately 4.7%.** This marks several consecutive quarters of losses for Vanke, with the continued drag from its real estate development business remaining the core issue.

On a positive note, the overall gross margin recovered to 9.1%, an increase of 3 percentage points year-on-year, indicating initial effectiveness in cost control. Meanwhile, **net cash outflows from operating activities narrowed significantly from RMB 5.79 billion in the same period last year to RMB 2.16 billion, an improvement of 62.7%**, suggesting that the company has made some progress in compressing operating expenditures.

However, the downturn in the core real estate development business remains alarming. **Contracted sales amount in the first quarter was only RMB 16.77 billion, a plummet of 53.8% year-on-year; recognized revenue stood at RMB 14.57 billion, a decline of 36.1% year-on-year.** At the same time, the asset-liability ratio remained high at 77.1%, with total interest-bearing liabilities amounting to RMB 356.05 billion, indicating that debt pressure remains heavy.

## Revenue Down 23.9%, Development Business Drags Overall Performance

Vanke's total operating revenue in the first quarter was RMB 28.93 billion, a year-on-year decrease of 23.9%. Among this, the real estate development business contributed RMB 14.57 billion, a year-on-year decline of 36.1%, making it the primary factor dragging down overall revenue. In contrast, the operational services business performed relatively steadily, contributing RMB 12.48 billion, a slight year-on-year increase of 1.7%, becoming an important "ballast" for performance.

Looking at the details of the income statement, non-operating expenses surged by 139.5% year-on-year to RMB 660 million, mainly due to increased late payment fees, reflecting the company's ongoing pressure in debt repayment. Income tax expenses also saw an abnormal jump, shifting from a tax benefit of RMB 320 million in the same period last year to an expense of RMB 1.11 billion in the current period. This was because, while the group as a whole incurred losses, some subsidiaries still generated taxable profits, coupled with the reversal of deferred tax assets, which further eroded profit margins.

## Sales Plunge, De-stocking Pressure Remains High

Sales data from the real estate development business has raised market concerns. In the first quarter, Vanke achieved a contracted sales area of 1.401 million square meters and a contracted sales amount of RMB 16.77 billion, representing year-on-year declines of 42.2% and 53.8% respectively. The magnitude of these declines far exceeded the industry average.

As of the end of the first quarter, Vanke still had 10.533 million square meters of sold resources within the scope of its consolidated statements that had not yet been completed and settled, corresponding to a contract amount of RMB 107.2 billion. This large pool of pending settlement resources is both a potential source of future revenue and implies that the company needs to continue investing funds to complete deliveries.

The new construction and resumed construction floor area eligible for plot ratio calculation in the first quarter was 692,000 square meters, completing only 22.6% of the annual plan; the completed floor area eligible for plot ratio calculation was 983,000 square meters, completing 13.2% of the annual plan. The overall pace of construction start and completion was slow, possibly related to tight funding and weak market demand. Notably, 30 projects totaling 7,600 housing units were delivered on schedule in the first quarter, with 32.1% delivered 30 days ahead of schedule, demonstrating stable execution in "ensuring delivery of homes."

## Operational Services Business: Diversified Growth Becomes a Highlight

Amidst deep pressure in the development business, Vanke's diversified operational services sector demonstrated strong resilience, becoming an important force supporting the company's fundamentals.

In terms of **property services**, Onewo continued to expand relying on its AI real estate management brain "Lingshi," extending from residential scenarios to diverse spaces such as industrial parks and urban blocks. In the first quarter, it won bids for super-large projects such as Shunde Hospital of Guangzhou University of Chinese Medicine and the First Affiliated Hospital of Xiamen University, showing initial results from its technology-enabled strategy.

In terms of **rental housing**, operating revenue in the first quarter reached RMB 724 million. As of the end of March, a total of 251,000 long-term rental apartments were under operation and management, with the overall occupancy rate stabilizing at 93.7%. The lease term of existing contracts increased to 366 days, 51 days longer than the same period last year, indicating continuously strengthening customer stickiness.

In terms of **commercial development and operation**, operating revenue in the first quarter reached RMB 2.08 billion (including non-consolidated entities), a year-on-year increase of 7.3%. The overall occupancy rate of commercial projects managed by SCPG reached 93.1%. Through brand activities such as the "Fa Fa Season," same-store foot traffic increased by 6.8% year-on-year in the first quarter, and same-store sales increased by 6.1% year-on-year.

In terms of **logistics and warehousing**, operating revenue in the first quarter reached RMB 1.09 billion, a year-on-year increase of 9.8%. Among this, cold chain business revenue was RMB 640 million, a substantial year-on-year increase of 28%; service revenue was RMB 410 million, a year-on-year increase of 38%. The revenue scale from the top 30 cold chain customers grew by 59% year-on-year, showing strong growth momentum.

## Under Heavy Debt Pressure, Financing Costs Continue to Decline

As of the end of the reporting period, Vanke held monetary funds of RMB 60.49 billion, with total interest-bearing liabilities of RMB 356.05 billion and an asset-liability ratio of 77.1%, indicating that the debt structure remains highly tense. Total current liabilities amounted to RMB 557.1 billion, among which non-current liabilities due within one year reached RMB 136.68 billion, meaning short-term debt repayment pressure cannot be underestimated.

In terms of debt management, Vanke continued to receive support from financial institutions in the first quarter. The comprehensive cost of overall existing financing dropped to 2.88%, a further decrease of 14 basis points from the end of the previous year. The comprehensive cost of domestic existing financing was even lower at 2.62%. The major shareholder, Shenzhen Metro Group, cumulatively provided an additional RMB 2.73 billion in shareholder loans from the beginning of the year until the disclosure date, with a comprehensive financing cost of only 2.34%. It also agreed to extend the principal and interest of RMB 274 million in shareholder loans originally scheduled for repayment in the first quarter, providing crucial liquidity support for the company.

In addition, extension proposals for three medium-term notes ("22 Vanke MTN004", "22 Vanke MTN005", "23 Vanke MTN001") and one corporate bond ("H1 Vanke 02") were approved by the bondholders' meeting, alleviating short-term liquidity risks to a certain extent.

## Cash Flow Improvement, Steady Progress in Asset Disposal

Positive changes emerged in cash flow. Net cash outflows from operating activities in the first quarter were RMB 2.16 billion, a significant narrowing of 62.7% compared to the net outflow of RMB 5.79 billion in the same period last year, mainly benefiting from the effective compression of operating expenditures. Net cash outflows from financing activities were RMB 4 billion, a year-on-year decrease of approximately 58.9%, with the scale of debt repayment significantly lower than in the same period last year.

In terms of asset disposal, Vanke completed the disposal of the Guangzhou Yuncheng parking lot asset package in the first quarter, with a transaction amount of RMB 87 million, achieving an orderly exit from non-core assets. In addition, the Shiniushan project in Licang District, Qingdao, revitalized commercial land into residential land through the "storage, planning adjustment, and re-transfer" model. The Shanghai Xinyao Zhongcheng project improved asset efficiency by RMB 240 million by promoting the relaxation of restrictions on self-held rental housing. Work to revitalize existing resources is advancing on multiple fronts.

## Stable Shareholding Structure, Shenzhen Metro Group Continues to Provide Support

Regarding shareholding structure, Shenzhen Metro Group holds a 27.18% stake, amounting to 3.24 billion shares, remaining the largest shareholder. Its state-owned background provides important credit endorsement for Vanke. Shenzhen Metro incurred a loss of approximately RMB 37.197 billion in 2025 and recognized investment losses on its long-term equity investment in Vanke.

As of the end of the reporting period, the company's total share capital was 11.93 billion shares, including 9.72 billion A-shares and 2.21 billion H-shares. The shareholding structure remained stable with no significant changes.

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